Credence goods: a labeling problem?

of this document for non-commercial purposes by any means, provided this copyright notice appears on all such copies. Credence goods: a labeling problem? The marketing of credence goods has the potential to increase revenue of agricultural producers. However, process attributes must be related to consumers effectively. This paper examines labeling issues of credence goods. Literature related to credence goods and process attributes is reviewed and the potential for labeled agricultural products is explored. Background Consumer purchasing decisions can be based not only on the utility derived from consumption of the good, but also on the producing firms operating practices. Consumer goods are increasingly being differentiated by process attributes. Products of this type are referred to as credence goods. Examples of this include organically produced food, dolphin-safe tuna, and irradiated food. A consumer cannot inspect a good and determine if the process attribute claim is true. This creates an asymmetric information problem that can be alleviated by labeling implemented by a certification agent