International audienceLabels certify that a product meets some standard for quality, but often consumers are unsure of the exact standard that the label represents. Focusing on the case of ecolabels for environmental quality, we show how even small amounts of uncertainty can create consumer confusion that reduces or eliminates the value to firms of adopting voluntary labels. First, consumers are most suspicious of a label when a product with a bad reputation has it, so labels are often unpersuasive at showing that a seemingly bad product is actually good. Second, label proliferation aggravates the effect of uncertainty, causing the informativeness of labels to decrease rather than increase. Third, uncertainty makes labeling and nonlabeling ...
We study markets in which consumers prefer green products but cannot determine the environmental qua...
Eco-labels emphasize information disclosure as a tool to induce environmentally friendly behaviors b...
An increasing number of product labels is making environmental claims. Typically, these claims are n...
Labels certify that a product meets some standard for quality, but often consumers are unsure of the...
Consumers are rarely sure of the exact standard that product labels and other certificates of qualit...
How are eco-label strategies affected by consumer confusion arising from the profusion of eco-labels...
Labelling is an increasingly popular way to deal with the problem of non-observability of quality in...
Are labels good or bad for consumers and firms? The answer may seem straightforward since labels imp...
International audienceWe analyze credence goods markets in the case of two firms. Consumers know tha...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
We analyze credence goods markets in the case of two firms. Consumers know that the quality of the g...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
There is still a substantial information asymmetry between producers and consumers. Despite the rece...
International audienceThe demand for products differentiated by process attributes, such as "green" ...
We study markets in which consumers prefer green products but cannot determine the environmental qua...
Eco-labels emphasize information disclosure as a tool to induce environmentally friendly behaviors b...
An increasing number of product labels is making environmental claims. Typically, these claims are n...
Labels certify that a product meets some standard for quality, but often consumers are unsure of the...
Consumers are rarely sure of the exact standard that product labels and other certificates of qualit...
How are eco-label strategies affected by consumer confusion arising from the profusion of eco-labels...
Labelling is an increasingly popular way to deal with the problem of non-observability of quality in...
Are labels good or bad for consumers and firms? The answer may seem straightforward since labels imp...
International audienceWe analyze credence goods markets in the case of two firms. Consumers know tha...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
We analyze credence goods markets in the case of two firms. Consumers know that the quality of the g...
Programs that certify the environmental (or other social) attributes of firms are common. But the pr...
There is still a substantial information asymmetry between producers and consumers. Despite the rece...
International audienceThe demand for products differentiated by process attributes, such as "green" ...
We study markets in which consumers prefer green products but cannot determine the environmental qua...
Eco-labels emphasize information disclosure as a tool to induce environmentally friendly behaviors b...
An increasing number of product labels is making environmental claims. Typically, these claims are n...