Separating Myth from Reality: An Analysis of Socially Acceptable Credence Attributes

Abstract

There has been increasing interest in food characteristics that are broadly classified here as socially acceptable credence attributes. This review considers several demand-side issues associated with the economic analysis of these attributes. First, despite ample research and media discussion suggesting strong preference for these food attributes, market shares remain low. Hypothetical bias and social desirability bias likely play a prominent role in explaining this disconnect. There has also been an increase in government and food industry regulation aimed at socially acceptable credence attributes, and this article considers why public votes and policy positions appear discordant with retail shopping behavior. One set of policy proposals involves more information disclosure related to such attributes; however, the welfare economics associated with information provision is not straightforward. While much has been learned about consumers’ stated willingness-to-pay for socially acceptable credence attributes, this review suggests that more research is needed to understand the current environment surrounding these food characteristics.