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The evolution of credence goods in customer markets: exchanging 'pigs in pokes'

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When consumers buy products like for instance food products, they make choices by comparing price and quality among alternatives|e.g. a standard product and an animal-welfare oriented variant. The choice between product variants is influenced by the available information channels and the related uncertainty of information concerning di erent quality characteristics. For in- stance, the amount of visible fat of a pork chop wrapped in plastic can imme- diately be inspected and the taste of pork can be experienced, but the previous welfare of the dead pig is to most consumers a matter of loosely grounded be- lief. The consumer can to some extent improve his or her level of...
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The evolution of credence goods in customer markets: exchanging `pigs in pokes'

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