Organic Vs Inorganic Food Essay Contest

Abstract

We analyze the organic and non-organic production choices of two firms by considering customers’ trust in organic food products. In the context of customers’ possible willingness to pay a premium price and their mistrust in organic food products, two firms first make choices on offering organic and non-organic food products. If offering organic products, a firm can further invest in the credence system to increase customers’ trust in their organic products. At the final stage, two firms determine prices. We provide serval insights. First, we characterize the market conditions in which only one firm, both firms or neither firm will choose to offer organic food products. We find that the higher the production costs or credence investment costs for organic food products are, the more likely firms are to choose to produce non-organic food products. Second, if it is expensive enough to invest in organic credence, offering organic food products may still be uncompetitive, even if organic production cost appears to have no disadvantage compared to non-organic food products. Third, we highlight how the prices of organic food products in equilibrium are affected by market parameters. We show that when only one firm offers organic food products, this firm tends to offer a relatively low price if organic credence investment is expensive. Fourth, we highlight how one firm’s credence investment decision in equilibrium can be affected by the product type choice of the other firm. We find that the investment in organic credence is lower when both firms offer organic food products compared with the case when only one firm offers organic food products. View Full-Text

Keywords: organic food products; sustainability; credence; competitionorganic food products; sustainability; credence; competition

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MDPI and ACS Style

Wang, Y.; Zhu, Z.; Chu, F. Organic vs. Non-Organic Food Products: Credence and Price Competition. Sustainability2017, 9, 545.

AMA Style

Wang Y, Zhu Z, Chu F. Organic vs. Non-Organic Food Products: Credence and Price Competition. Sustainability. 2017; 9(4):545.

Chicago/Turabian Style

Wang, Yi; Zhu, Zhanguo; Chu, Feng. 2017. "Organic vs. Non-Organic Food Products: Credence and Price Competition." Sustainability 9, no. 4: 545.

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Essay on The Controversy of Organic vs. Nonorganic Food Production

1115 Words5 Pages

Every year, the average person in America consumes nearly a ton of food, and the majority of this consists of packaged and highly processed products. These foods also contain a substantial amount of unwanted fats and chemicals. The growing of organic versus nonorganic food has been a controversial issue for a long time among organic and nonorganic farmers and their customers. This is due to the myriad definitions of healthy eating and the stated benefits on both sides.
Organic foods prove to be more beneficial than detrimental nonorganic foods for the following reasons: 1) organic foods are not sprayed with pesticides like the majority of America’s food supply; 2) they provide a healthier meal for those who consume these organic foods;…show more content…

Every year, the average person in America consumes nearly a ton of food, and the majority of this consists of packaged and highly processed products. These foods also contain a substantial amount of unwanted fats and chemicals. The growing of organic versus nonorganic food has been a controversial issue for a long time among organic and nonorganic farmers and their customers. This is due to the myriad definitions of healthy eating and the stated benefits on both sides.
Organic foods prove to be more beneficial than detrimental nonorganic foods for the following reasons: 1) organic foods are not sprayed with pesticides like the majority of America’s food supply; 2) they provide a healthier meal for those who consume these organic foods; and 3) they supply a safe environment for ecosystems and their inhabitants. This cannot be said of nonorganic foods without consumers thoroughly researching those products. People who eat organic foods never need to worry about feeling guilty about what they are putting into their bodies and how these organic foods may affect our planet.
Organic foods are said to be better than nonorganic foods because they do not contain the harmful chemicals and pesticides that are found in nonorganic foods. According to Darcy Bonfils, a reporter for ABC News, “Scientists have shown that children age 5 and under ingest an average of eight pesticides each day. And young children, whose internal organs and systems are developing rapidly, are particularly

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