Consumers, mainly in Europe and North America, frequently express concerns about the environmental, social or health impacts of the products they purchase. When these products are produced abroad, consuming countries often resort to using trade policies and consumer actions targeting imported...

This paper presents a model of quality choice in the case of credence goods, i.e. when consumers cannot observe quality even after purchase. It shows that firms may voluntarily overcomply, i.e., produce high quality, even when doing so implies giving up short-run profits. This generalizes...

In this paper we analyze the effectiveness of eco-labels in reducing the supply of eco-unfriendly products. We focus on the situation where a labeled product is viewed by consumers as a private good and develop a theoretical model to pin down theinteraction between consumers' willingness to pay...