Genetically modified (GM) foods have been engulfed in considerable controversy, and the early optimism has been dampened. Information issues—labeling and asymmetric information—are central to the GM-food debate. Furthermore, it is important to understand the reaction in developed countries to...

Controversy surrounds the introduction of genetically modified foods. One key issue relates to tolerance levels—the impurity rate tolerated before a commodity must be labeled. Currently, the United States has not defined a tolerance level for genetically modified foods. This paper uses data...