Nutrition Labeling in the Food-Away-From-Home Sector: An Economic Assessment

Americans spent about 46 percent of their total food budget on food away from home in 2002, up from 27 percent in 1962. Such foods tend to be less nutritious and higher in calories than foods prepared at home, and some studies have linked eating away from home to overweight and obesity in adults and children. Current nutrition labeling law exempts much of the food-away-from-home sector from mandatory labeling regulations. Because consumers are less likely to be aware of the ingredients and nutrient content of away-from-home food than of foods prepared at home, public health advocates have called for mandatory nutrition labeling for major sources of food away from home, such as fast-food and chain restaurants. This report provides an economic assessment of a food-away-from home nutrition labeling policy, including justifications for policy intervention and potential costs and benefits of the policy.Diet quality, food labeling, government regulation, health, mandatory disclosure, nutrition information, Nutrition Labeling and Education Act, obesity, reformulation Acknowledgments, Food Consumption/Nutrition/Food Safety,

Information Unraveling Revisited: Disclosure of Horizontal Attributes

This paper analyzes in a spatial framework how much information a seller discloses about the variety he sells when he faces a buyer with a privately known taste for variety. I identify an equilibrium in which, for each possible variety, the seller's optimal strategy consists of either fully disclosing the variety or disclosing how far it is from the buyer's expected taste. The set of varieties the seller fully discloses monotonically expands as the buyer's taste for variety becomes stronger. I show that this is the unique undefeated equilibrium. From a policy perspective, mandating full disclosure is socially harmful

A Transaction cost Perspective on the Influence of Standards on Product Development Examples from the Fruit and Vegetable Market

In this paper I argue that quality standards, products standards, and quality classes influence the priority that firms give to different product developments. These standards may be viewed as institutions in the sense of shared rules of behavior or codes. They have become shared because there are increasing returns to their use. These increasing returns apply both to their functions as means of reducing the costs of specifying and communicating product quality and to their functions as means of reducing buyers' costs of comparing the quality of different products - both of which are part of transaction costs. When reliable and extensively used standards exist, transaction costs are reduced. But these positive consequences to individual firms of adhering to the same standards create a sort of inertia in product development. This is because developments which are in line with existing standards will not introduce new transaction costs, while developments which break with the conformity of the standards will. In order for the latter kinds of product developments to be profitable, both development costs and transaction costs have to be overcome.Transaction costs, product development standards

Personal determinants of organic food consumption: a review

Purpose - A lot of literature is available that discusses personal determinants of organic food consumption. However different models and determinants are used in the literature. This paper aims to provide an overview, within a framework linking Schwartz' values theory and the theory of planned behaviour (TPB). Also it seeks to focus on the importance of affective attitude, emotions, personal norm, involvement and uncertainty related to organic food consumption. Design/methodology/approach - The paper is based on secondary data sources, namely the literature concerning personal determinants of organic food consumption. Findings - Both the values theory and the theory of planned behaviour have been referred to as relevant theories for better understanding consumers' choice for organic food. Organic food consumption decisions can be explained by relating attributes of organic food with more abstract values such as "security", "hedonism", "universalism", "benevolence", "stimulation", "self-direction" and "conformity". Appealing to these values can positively influence attitudes towards organic food consumption. Besides attitude, subjective and personal norm and (perceived) behavioural control influence consumption of organic food. Research limitations/implications - More research related to the role of uncertainty (reduction) during the process of buying organic food is recommended. Practical implications - Relatively little research has examined the affective component of attitude and emotions in relation to organic food consumption, while these may play an important role as drivers of involvement and thus help to jolt food purchasers out of their routine of buying conventional food and set a first step to adopt organic food. Originality/value - To the authors' knowledge, this is the first paper providing a comprehensive overview and linking the literature on organic food consumption to the values theory and the theory of planned behaviour, including the role of personal norm and focusing on emotions. The proposed integration of mental processing in an organic food consumption model leads to interesting hypotheses and recommendations for policy makers, researchers and stakeholders involved in the organic food market

Governance for quality management in smallholder-based tropical food chains

The paper provides a framework that focuses on the linkages between several key dimensions of supply chain organization and performance of perishable tropical food products. The focus is on the relationship between governance regime and quality management. However, two other but related variables are taken into account because they impact on the relationship between governance and quality management. These variables are channel choice and value added distribution in the supply chain. Governance regime is reflecting how to enhance coordination and trust amongst supply chain partners and how to reduce transaction costs. Quality management is dealing with how to manage food technology processes such that required quality levels can be improved and variability in quality of natural products can be exploited. Governance regimes in relation to quality management practices are discussed to the extent that supply chain partners are able, or are enabled, to invest in required quality improve¬ments. Reduction of transaction costs, creation of trust-based networks and proper trade-offs between direct and future gains may offer substantial contributions to effective quality management and enforcement. This framework has been applied to nine case studies on smallholder-based food supply chains originating from developing countries (Ruben et al., 2007). Three of these case studies are discussed in this paper to illustrate what challenges can be derived from the case studies. The selected case studies concern fish originating from Kenya, mango originating from Costa Rica and vegetables produced in China.Agribusiness, Agricultural and Food Policy,

Governance for quality management in smallholder-based tropical food chains

Abstract The paper provides a framework that focuses on the linkages between several key dimensions of supply chain organization and performance of perishable tropical food products. The focus is on the relationship between governance regime and quality management. However, two other but related variables are taken into account because they impact on the relationship between governance and quality management. These variables are channel choice and value added distribution in the supply chain. Governance regime is reflecting how to enhance coordination and trust amongst supply chain partners and how to reduce transaction costs. Quality management is dealing with how to manage food technology processes such that required quality levels can be improved and variability in quality of natural products can be exploited. Governance regimes in relation to quality management practices are discussed to the extent that supply chain partners are able, or are enabled, to invest in required quality improve-ments. Reduction of transaction costs, creation of trust-based networks and proper trade-offs between direct and future gains may offer substantial contributions to effective quality management and enforcement. This framework has been applied to nine case studies on smallholder-based food supply chains originating from developing countries (Ruben et al., 2007). Three of these case studies are discussed in this paper to illustrate what challenges can be derived from the case studies. The selected case studies concern fish originating from Kenya, mango originating from Costa Rica and vegetables produced in China

THE ECONOMICS OF INFORMATION: MARKETS FOR SEAFOOD ATTRIBUTES

This paper presents the economic theory of information, reflected by differing demand for and supply of products in the presence or absence of certain attributes. This theory is applied to the market for seafood and reviews the use of this framework in the empirical literature. Product attributes can be search attributes (demand for the product found with the lowest price or contained in preferred packaging), experience attributes (demand for a product because of previous experience with the product's taste or ease of preparation), and credence attributes (preference for products with attributes which must be identified as present by a trusted source, such as safety or recyclability). It is highly likely that, given today's competitive market for seafood and consumers' interest in knowing more about the products they purchase, the market for seafood with desired attributes will continue to evolve.Resource /Energy Economics and Policy,

A Model of Product Design and Information Disclosure Investments

As information availability for products and services is increasing and as consumers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce consumer uncertainty. We argue that today’s firms should view product design and investments to reduce consumer uncertainty as an integrated process, which is in turn heavily influenced by how much information consumers can obtain independently, for example, by reading product reviews or through third party infomediaries. Using a game-theoretic model, we explain how product quality decisions influence future investments to reduce consumer uncertainty, and demonstrate how firms should take this dependency into account to avoid over-investing in quality. We also show that firms can free ride on the product information already available in the market by third-party infomediaries, and reduce their own disclosure investments. We show that this is especially true for lower quality firms

Consumers' Perceptions about Food Quality Attributes and Their Incidence in Argentinean Organic Choices

There is an increasing consumers' concern for food safety and quality and, at the same time, there has been a significant market increment in differentiated or high value products consumption, including organic products. The lack of empirical research in Argentina regarding consumers' awareness of food safety brought our attention. Therefore, the objective of this paper is to analyse consumers' perceptions about the risk and quality attributes of food consumption; and to evaluate the incidence of these factors when buying organic products in Argentina. The Lancaster model (1966) provided the theoretical basis for the use of products attributes and characteristics to analyse the incidence of these attributes in consumers' choices. The data used in this study derives from a food consumption survey on organic and non-organic consumers conducted in Buenos Aires City, Argentina, in April 2005. According to consumers' perceptions, 67% were worried about their health, 79% take care in meals, 57% perceived the high risk of hormones and pesticides in food content and 91% of consumers are used to reading labels before or during their purchase. A Logit Binomial Regression Model was applied to explore which factors affected organic food consumption. The results yielded by this model suggest that the consumers with higher educational level, who eat healthy food, and consider food control organisms 'inefficient' are more likely to buy organic products. A high percentage of consumers read and trust label information in Argentina. This has interesting policy implications to promote differentiated and high value products, and to reduce information asymmetries.Food safety, Quality attributes, Consumers, Organics, Food Consumption/Nutrition/Food Safety, Q18, D1,

USING INFORMATIONAL LABELING TO INFLUENCE THE MARKET FOR QUALITY IN FOOD PRODUCTS

In the United States, the federal government is increasingly using requirements for informational labeling on food products to influence 1) consumers' knowledge and purchasing patterns and 2) manufacturers' product offerings and marketing practices. We discuss the economic rationale behind these regulations and issues related to judging their success or failure.Food labeling, food quality, food safety, information, Food Consumption/Nutrition/Food Safety,