Fair Trade : Product Differentiation and Warm Glow Effect

Titre Fair Trade : Product Differentiation and Warm Glow Effect
Lien hypertexte Site de https://www.jsie.jp
Auteur STRELCHENKO, Olga ; ABE, Kenzo
Date 2020
Pagination 33 p.
Notes Travail universitaire - Osaka University Graduate School of Economics, Chuo University Faculty of Economics.
Résumé “Fair Trade exists if a consumer in the developed country distinguishes between the FT and non-FT goods and warm glow is sufficiently high. FT is always beneficial for its direct participants and it can also be favorable even for non-FT producers and non-FT firms. warm glow positively affects the FT producers’ wage and the welfare of the developing country, but it has no impact on the welfare of the developed country. üunder FT, the welfare of the developing country increases, and the welfare of the developed country under FT can get higher if product differentiation is sufficiently close to perfect.”

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