We discuss empirical research on consumer preferences and willingness to pay for several types of food quality or attribute labeling. The selected categories we include are eco-labels, GM food labels, U.S. state agricultural-product labels and European Protected Geographical Indication labels, BSE-tested-beef labels, and “Fair Trade” labels. We discuss generalizations that can be drawn from the...

In this paper we report on a principal-agent experiment where the principal can choose whether to rely on an unenforcable bonus contract or to combine the bonus contract with a fine if the agent’s effort falls below a minimum standard. We show that most principals do not use the fine and that the pure bonus contract is more efficient than the combined contract. Our experiment suggests that prin...

We consider an investor maximizing his expected utility from terminal wealth with portfolio decisions based on the available information flow. This investor faces the opportunity to acquire some additional initial information G. His subjective fair value of this information is defined as the amount of money that he can pay for G such that this cost is balanced out by the informational advantage...

http://dx.doi.org/10.1016/j.comnet.2014.09.009 1389-1286/ 2014 Elsevier B.V. All rights reserved. ⇑ Corresponding author. Tel.: +82 42 350 3486. E-mail addresses: [email protected] (H. Park), yiyung@kaist. edu (Y. Yi), [email protected] (Y. Kim). 1 Being malicious or selfish just follows a fabricator’s inte cheating. However, it is possible that a selfish user’s behavio indirectly ma...

It was October of 2010, on a Saturday afternoon. Tom and Kelly sat down and ordered a recently released blockbuster smash hit from their digital cable television pay-per-view system. Halfway through the movie, Tom’s text-enabled wireless phone alerted him of a problem at his office. ‘‘Looks like they’re going to need me at work for a few hours. I’m really sorry. I’ve got to go. How about we rec...

Baby-FriendlyTM hospitals give mothers and babies the best start in feeding their babies. The Baby-Friendly Hospital Initiative (BFHI) began in 1991 as a joint program of the World Health Organization (WHO) and UNICEF. It was created to honor hospitals and birth centers that give the best care to mothers and babies related to infant feeding. To be certified Baby-Friendly, hospitals and birth ce...

We provide new evidence on consumer demand for ethical products from experiments conducted in a U.S. grocery store chain. We find that sales of the two most popular coffees rose by almost 10% when they carried a Fair Trade label as compared to a generic placebo label. Demand for the higher priced coffee remained steady when its price was raised by 8%, but demand for the lower priced coffee was ...

This paper investigates the role of fairness, uncertainty, and a "veil of ignorance" in efficient resource allocation. It focuses on the choice of private and public goods, the method of financing, as well as the choice of information available for public decision-making. A fair-equivalent and Pareto efficient allocation is presented using a maximin criterion defined in terms of individual will...

The relationship between executive pay and corporate financial performance continues to attract wide academic, media and policy attention. The very high salaries enjoyed by senior executives in corporations in the US are often contrasted with the relatively low pay received by executives in Europe and Asia. Empirical research on executive pay has mainly concentrated on the pay-performance relat...