Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

10-11-2017

Document Type

Article

Citation

Cornhusker Economics, October 11, 2017, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2017 University of Nebraska.

Abstract

The development of several niche food markets has been enabled by labels highlighting the existence of desirable or the absence of undesirable food attributes and/or production technologies, effectively targeting consumers willing to pay for this type of information. Examples include the "All Natural," “No growth promoting antibiotic," "No GMOs," and "Cage-free" food labels. In what could be viewed as an extreme example of labeling what is absent, consumers can now purchase gluten-free water (McFadden 2017). This type of "redundant" labeling seeks to exploit uninformed consumers.

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