Hainmueller, Jens, Hiscox, Michael J. and Sequeira, Sandra 
ORCID: 0000-0001-8831-6736
(2015)
Consumer demand for Fair Trade: evidence from a multistore field experiment.
Review of Economics and Statistics, 97 (2).
pp. 242-256.
ISSN 0034-6535
Abstract
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 elastic: a 9% price increase led to a 30% decline in sales. While consumers attach value to ethical sourcing, there is significant heterogeneity in willingness to pay for it
| Item Type: | Article |
|---|---|
| Official URL: | https://www.mitpressjournals.org/ |
| Additional Information: | © 2015 The President and Fellows of Harvard College and the Massachusetts Institute of Technology |
| Divisions: | International Development |
| Subjects: | H Social Sciences > HF Commerce |
| Date Deposited: | 31 May 2018 16:35 |
| Last Modified: | 12 Dec 2024 01:03 |
| URI: | http://eprints.lse.ac.uk/id/eprint/88145 |
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