School of Business

Document Type

Conference Paper

Abstract

Governments have been advocating for an open approach to encourage private sector disclosing relevant information in order to create more efficient market. However, it is not always clear what information are needed by consumers. Policy makers need to develop measures that help decide what information should be disclosed and whether a disclosure should be mandated. In this research, we focus on information disclosure in organic products, where consumers find the complex organic labeling hard to understand. Through two studies, we show that feed origin makes a significant difference in consumers' choice; and sellers with feed from non-USA countries would be motivated to disguise the information on feed origin. We propose a way to implement “smart” information disclosure that can effectively distinguish USA feed from feed with undisclosed origin, which enables the feed from USA to claim a higher price premium. Our findings have policy implications for organic product disclosure.

Publication Title

Proceedings of the Annual Hawaii International Conference on System Sciences

Publication Date

2017

Volume

2017-January

First Page

2701

Last Page

2710

ISSN

15301605

ISBN

9780998133102

Keywords

consumer choice, information disclosure, organic products, policy implications, policy instruments, policy makers, price premiums, private sectors

Included in

Business Commons

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