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if it does not go to http://aede.osu.edu/resources/docs/pdf/29806233-6000-11D5-ABED00C00D014775.pdf.

Category_ID - 5
Doc_Title - The Impacts of Labeling on Trade in Goods that may be Vertically Differentiated According to Quality
Doc_Author - Brian Roe, Ian Sheldon
Doc_Number - AEDE-WP-0006-00
Doc_Start_Date - 06/13/2001
Doc_End_Date - 06/13/2002
Doc_URL_AddLocal - C:\WINNT\ACF1559.tmp
Tag_Functional - AED Econ Working Paper
Tag_SubUnit - Marketing,Trade
Tag_Program - NULL
Tag_Industry - Agribusiness,Food Processing
Tag_Misc - NULL
Tag_Resources - NULL
Tag_Practice - International,Trade

A model of vertical differentiation is used to analyze the introduction of continuous and binary labeling in a market for credence goods under autarky and free trade. In the case of binary labeling, welfare is increased if the standard is set above the level that would be chosen under continuous labeling under autarky. In the case of free trade, the effects depend on whether binary labeling is harmonized or whether there is mutual recognition of different standards. Keywords: Labeling, trade, vertical differentiation