@article{Tran:170220,
      recid = {170220},
      author = {Tran, Van T. and Yiannaka, Amalia and Giannakas,  Konstantinos},
      title = {AN ECONOMIC ANALYSIS OF NANOFOOD LABELING},
      address = {2014},
      number = {329-2016-12896},
      pages = {36},
      year = {2014},
      abstract = {The paper examines the economic effects of labeling of  food nanotechnology products using an analytical framework  of heterogeneous consumers and imperfectly competitive  suppliers. Labeling results in increased costs for nanofood  producers that in turn increase nanofood prices and reduce  their market demand; the cost effect of the labeling  policy. Labeling also affects
consumer preferences, the  preference effect, by reducing uncertainty regarding the  nature of the food product (certainty effect), and by  potentially being perceived as a warning signal (stigma  effect). The market and welfare impacts of nanofood  labeling depend on which of the above effects dominate. If  consumer aversion towards food nanotechnology increases due  to labeling,
nanofood suppliers incur losses to the benefit  of suppliers of conventional and organic food substitutes  and welfare decreases for most of consumers. Consumers who  experience greater losses are those with relatively high  aversion to interventions in the production process. On the  other hand, if the labeling regime results in consumers  becoming less averse to food nanotechnology and the  preference effect dominates the cost effect, then nanofood  suppliers see their profits increase. The economic impacts  of nanofood labeling are intensified when
consumers have  low awareness of food nanotechnology prior to the  implementation of the labeling policy and/or when  competition among food suppliers is more intense.},
      url = {http://ageconsearch.umn.edu/record/170220},
      doi = {https://doi.org/10.22004/ag.econ.170220},
}