Consumer demand for Fair Trade: evidence from a multistore field experiment
Hainmueller, J., Hiscox, M. J. & Sequeira, S.
(2015).
Consumer demand for Fair Trade: evidence from a multistore field experiment.
Review of Economics and Statistics,
97(2), 242-256.
https://doi.org/10.1162/REST_a_00467
(2015).
Consumer demand for Fair Trade: evidence from a multistore field experiment.
Review of Economics and Statistics,
97(2), 242-256.
https://doi.org/10.1162/REST_a_00467
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
Explore Further
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Sequeira, S., Hainmueller, J. & Hiscox, M.
(2014).
Replication data for: Consumer Demand for Fair Trade: Evidence from a Multi-Store Field Experiment.
[Dataset]. Harvard Dataverse.
https://doi.org/10.7910/dvn/26891