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Abstract

We discuss empirical research on consumer preferences and willingness to pay for several types of food quality or attribute labeling. The selected categories we include are eco-labels, GM food labels, U.S. state agricultural-product labels and European Protected Geographical Indication labels, BSE-tested-beef labels, and "Fair Trade" labels. We discuss generalizations that can be drawn from the studies as a group. Most importantly, we find that consumers must perceive high quality in order for the food product to command a premium. Furthermore, the perception of quality may sometimes differ across consumers.

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