A model of labeling with horizontal differentiation and cost variability
We study optimal disclosure of variety by a multiproduct firm with random costs. The prices for labeled varieties are increasing functions of the cost differential and do not reveal which variety is cheaper to produce. Nondisclosure is most common under moderate uncertainty about costs and not too m...
| Autor principal: | |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2011
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| Acceso en línea: | https://hdl.handle.net/10568/154080 |
| _version_ | 1855515633658101760 |
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| author | Saak, Alexander E. |
| author_browse | Saak, Alexander E. |
| author_facet | Saak, Alexander E. |
| author_sort | Saak, Alexander E. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We study optimal disclosure of variety by a multiproduct firm with random costs. The prices for labeled varieties are increasing functions of the cost differential and do not reveal which variety is cheaper to produce. Nondisclosure is most common under moderate uncertainty about costs and not too much idiosyncrasy in valuations and quality asymmetry. Mandatory disclosure decreases expected welfare when cost variability is large and quality asymmetry is small. The cheaper variety tends to be oversupplied (undersupplied) when disclosure is voluntary (mandatory). Competition among multiproduct firms that source inputs in the same upstream market may not lead to more disclosure. |
| format | Journal Article |
| id | CGSpace154080 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1540802024-11-15T08:52:08Z A model of labeling with horizontal differentiation and cost variability Saak, Alexander E. information diversification labelling quality labels We study optimal disclosure of variety by a multiproduct firm with random costs. The prices for labeled varieties are increasing functions of the cost differential and do not reveal which variety is cheaper to produce. Nondisclosure is most common under moderate uncertainty about costs and not too much idiosyncrasy in valuations and quality asymmetry. Mandatory disclosure decreases expected welfare when cost variability is large and quality asymmetry is small. The cheaper variety tends to be oversupplied (undersupplied) when disclosure is voluntary (mandatory). Competition among multiproduct firms that source inputs in the same upstream market may not lead to more disclosure. 2011-07 2024-10-01T13:59:21Z 2024-10-01T13:59:21Z Journal Article https://hdl.handle.net/10568/154080 en https://doi.org/10.1093/ajae/aar028 Limited Access Wiley Saak, Alexander E. 2011. A model of labeling with horizontal differentiation and cost variability. American Journal of Agricultural Economics 93(4): 1131-1150. https://doi.org/10.1093/ajae/aar028 |
| spellingShingle | information diversification labelling quality labels Saak, Alexander E. A model of labeling with horizontal differentiation and cost variability |
| title | A model of labeling with horizontal differentiation and cost variability |
| title_full | A model of labeling with horizontal differentiation and cost variability |
| title_fullStr | A model of labeling with horizontal differentiation and cost variability |
| title_full_unstemmed | A model of labeling with horizontal differentiation and cost variability |
| title_short | A model of labeling with horizontal differentiation and cost variability |
| title_sort | model of labeling with horizontal differentiation and cost variability |
| topic | information diversification labelling quality labels |
| url | https://hdl.handle.net/10568/154080 |
| work_keys_str_mv | AT saakalexandere amodeloflabelingwithhorizontaldifferentiationandcostvariability AT saakalexandere modeloflabelingwithhorizontaldifferentiationandcostvariability |