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attribute information, the impact of ethical certifications (Fairtrade and Organic) is diminished relative to other attributes …. Both positive and negative framing of certifications increase their impact on choice relative to neutral frames, with … certifications to guide choice, but that affective framing has a larger impact on the weight placed on certifications in consumer …
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The information asymmetries inherent in credence goods have typically led economists to conclude these markets require well-defined quality standards and third-party verification that producers are meeting those standards. Nonetheless, many producers of credence goods appear to be opting out of...
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We compare certification to a minimum quality standard (MQS) policy in a duopolistic industry where firms incur quality-dependent fixed costs and only a fraction of consumers observes the quality of the offered goods. Compared to the unregulated outcome, both profits and social welfare would...
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