Milk by Any Other Name … Consumer Benefits from Labeled Milk

Tirtha Dhar · Jeremy D. Foltz

110 citations0/0 files storedAmerican Journal of Agricultural Economics

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Economics of Agriculture and Food Markets Organic Food and Agriculture Economic and Environmental Valuation

Abstract

Abstract This article uses revealed preferences of consumers to study the consumer benefits from rBST‐free and organic labeled milk. The article specifies and estimates a quadratic AIDS demand system model for different milk types using U.S. supermarket scanner data. The introduction of rBST‐free and organic milk is used to estimate consumer benefits that are decomposed into two components, competitive and variety effects. Results show significant consumer benefits from organic milk and to a lesser extent from rBST‐free milk. Based on the findings, we explore implications for present U.S. labeling standards.

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References

1988The Theory of Industrial Organization 1980An Almost Ideal Demand System 1980Economics and Consumer Behavior 1997Quadratic Engel Curves and Consumer Demand 2007Risk Ownership in Contract Manufacturing 2008Exact Consumer's Surplus and Deadweight Loss 1988Demand for Beef and Chicken Products: Separability and Structural Change 2000Assessing the Competitive Interaction between Private Labels and National Brands

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2014Consumer Acceptance of New Food Technologies: Causes and Roots of Controversies 2010Household demand analysis of organic and conventional fluid milk in the United States based on the 2004 Nielsen Homescan panel 2010Comparing Parts with the Whole: Willingness to Pay for Pesticide-Free, Non-GM, and Organic Potatoes and Sweet Corn 2017Organic labelling, private label, and U.S. household demand for fluid milk 2013Developing Brands for Patented Fruit Varieties: Does the Name Matter?2009

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