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Welfare Loss from Inaccurate Information: An Economic Model with Application to Food Labels
Author(s) -
SEXTON RICHARD
Publication year - 1981
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1981.tb00710.x
Subject(s) - deadweight loss , welfare , economics , perfect information , imperfect , public economics , economic surplus , information loss , microeconomics , economic welfare , computer science , linguistics , philosophy , artificial intelligence , market economy
This study develops an economic framework which explains the welfare loss to consumers from imperfect information and provides a mechanism for analyzing the benefits from improved information. The model is applied to imperfect net weight information for packaged chicken and empirical estimates of the resulting welfare loss are obtained.