THE ECONOMICS OF INFORMATION: MARKETS FOR SEAFOOD ATTRIBUTES

This paper presents the economic theory of information, reflected by differing demand for and supply of products in the presence or absence of certain attributes. This theory is applied to the market for seafood and reviews the use of this framework in the empirical literature. Product attributes can be search attributes (demand for the product found with the lowest price or contained in preferred packaging), experience attributes (demand for a product because of previous experience with the product's taste or ease of preparation), and credence attributes (preference for products with attributes which must be identified as present by a trusted source, such as safety or recyclability). It is highly likely that, given today's competitive market for seafood and consumers' interest in knowing more about the products they purchase, the market for seafood with desired attributes will continue to evolve.