Effects of shared characteristics between eco-labels: A case for organic and local food

Food labels are created to reduce information asymmetry and help consumers make better food choices. However, the labels may have unanticipated effects, especially when they share common characteristics that may introduce confusion in making food choices. This study investigates how perceived relationships between different food labels may affect the price premiums of organic and local attributes for milk and fresh strawberries. Results show that the impacts of perception vary by product and label, and different food labels could positively affect price premiums on organic and local products. Results provide policy implications for better labeling and educational programs to reduce inadvertent confusion and improve consumer decision-making.