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Communication Dans Un Congrès Année : 2015

Prescriptive labeling: impacts on market and environmental issues

Résumé

Prescriptive labels such as traffic lights on food products or energy efficiency classes on electrical appliance modify firms’ decisions and thus a labelling policy may not reach its expected outcome. Using a vertical differentiation model where three firms compete in a market, we examine how changes in consumers’ quality perception induced by a prescriptive labelling shift market shares, prices and finally environmental benefits. We find that in the long-run, a rewarding labelling strategy leads to higher environmental benefits that a penalising one. Furthermore, a mildly restrictive rewarding strategy generates the highest environmental gains.
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Dates et versions

hal-01169626 , version 1 (29-06-2015)

Identifiants

  • HAL Id : hal-01169626 , version 1
  • PRODINRA : 306114

Citer

Sabine Duvaleix-Treguer, Louis Georges Soler. Prescriptive labeling: impacts on market and environmental issues. 64. Annual Meeting of the French Economic Association (AFSE), Jun 2015, Rennes, France. 23 p. ⟨hal-01169626⟩
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