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XF-FARHV8V-W
Research / Academic Paper ACTIVE

Consumer demand for fair trade: Evidence from a multistore field experiment

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Abstract

We provide new evidence on consumer demand for ethical products from experiments conducted in a U.S. grocery store chain. We find that sales of the two most popular coffees rose by almost 10% when they carried a Fair Trade label as compared to a generic placebo label. Demand for the higher-priced coffee remained steady when its price was raised by 8%, but demand for the lower-priced coffee was elastic: a 9% price increase led to a 30% decline in sales. While consumers attach value to ethical sourcing, there is significant heterogeneity in willingness to pay for it.

Source: resolved

Document Metadata

Issuer
MIT Press
Document Type
Research / Academic Paper
Publication Year
2015
Retrieved
5 May 2026
Source
Contact XFID for Access
Record ID
XFFARHV8VW
Validation
Inferred by XFID

Topics

Behavioural FinanceInvestor PreferencesResponsible Investment

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Academic / report citation
MIT Press (2015). Consumer demand for fair trade: Evidence from a multistore field experiment. XFID: XF-FARHV8V-W. Retrieved from https://xframework.id/XFFARHV8VW
Identifier only
XF-FARHV8V-W