The paper analyses the economic consequences of labeling in a setting with two vertically related markets. Labeling on the downstream market affects upstream price competition through two effects : a differentiation effect and a ranking effect. The magnitude of these two effects determines who...

We analyze credence goods markets in the case of two firms. Consumers know that the quality of the good varies but do not know which firm is of high quality. First, we show that the high quality producer may be unable to monopolize the market, or even to survive in some cases, in situations...

Are labels good or bad for consumers and firms? In this essay we analyze the label's nature as information revealing mechanism and explore the theoretical literature on labeling with respect to the following issues: i) the effects of labels on market structure, ii) the distortions due to the...

In a laboratory experiment, we study consumer responses to 7 Nutrition ‘Front of Pack’ Logos. In addition to the Guideline Daily Amounts (GDA) logo, the six other logos vary according to three criteria: (i) Granularity (What object do we rate? Product vs. Nutrient), (ii) Reference Set (How...