Regulating Market Language: Market Failure in Descriptive Signals

Stivers, Andrew

doi:10.1007/s10603-009-9091-z

Cited by 6 publications

(5 citation statements)

References 38 publications

(33 reference statements)

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“…As a result, consumers were left to sort through competing claims. Stivers (, ) shows the need for (and number of) quality standards depends on the differential cost of producing high‐quality products and value consumers attach to said quality.…”

Section: The Many Faces Of Fraud: Mislabelling Adulteration Tamperimentioning

confidence: 99%

Food fraud: economic insights into the dark side of incentives

Ehmke

Bonanno

Boys

et al. 2019

Aus J Agri & Res Econ

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In this review, we contextualise the articles in this special issue, relating them to existing food fraud research, and identify food fraud research trends, challenges and priorities for the near term. We accomplish these aims through a comprehensive review of research by food scientists, economists, other social scientists, legal experts, government research groups and international trade organisations. Existing food fraud research is heavily weighted towards food science, packaging and labelling, and legal areas of knowledge discovery. Moving forward, research is needed pertaining to general economic welfare outcomes from food fraud incidences, economic incentives to deter frauds, economic spillovers from fraud incidences to other food products and markets (domestic and international) and further delineation of the effect of different types of food fraud on consumer and producer welfare. The articles in this special issue make significant contributions to understanding of the role of food fraud in consumer decisions, measuring consumer welfare losses from fraud, food fraud spillover effects to other markets and new frameworks for fraud analysis.

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Section: The Many Faces Of Fraud: Mislabelling Adulteration Tamperimentioning

confidence: 99%

Food fraud: economic insights into the dark side of incentives

Ehmke

Bonanno

Boys

et al. 2019

Aus J Agri & Res Econ

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“…Signals to stakeholder groups are common. Signals frequently appear as indicators or communications in areas such as financial market analysis (Gropp et al , 2006; Stivers, 2009), IPO pricing analysis (Cohen and Dean, 2005; Ragozzino and Reuer, 2011) and job market analysis (Spence, 1973). Management uses signals in a variety of formats, such as in face-to-face discussions, analyst conferences, calls and press releases.…”

Section: Signaling Theory and Crisesmentioning

confidence: 99%

Executive malfeasance: Surprisingly, honesty may not be the best policy

TenBrink

2019

SBR

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Purpose Research indicates honesty, ethics and leadership are critical during a crisis. This paper aims to examine that ideology by analyzing the role acceptance or denial of executive malfeasance has on firm value after a crisis. Design/methodology/approach This is an event study that examines crises attributed to executive malfeasance. These qualitative crises data are blended with an analysis of abnormal returns to assess differences between executive actions. Findings These results indicate that ethical and timely acceptance of a firm’s role in malfeasance does not appear to be rewarded by stockholders. These data also show that there is no reward for a delayed acceptance of malfeasance. Therefore, ethics and honesty do not appear to differentiate post-crisis recovery. Research limitations/implications This research focuses on a major factor of firm success – its value. It would be interesting to explore how stakeholders, beyond those that invest in the firm, impact the value over the long run. Practical implications While prior research indicates that honesty is prudent, this examination indicates that obfuscation does not impact firm value during a recovery. This study promotes questioning one’s ethical compass as a stock or stakeholder in malfeasance-mired firms. Originality/value In conflict with crisis-based research, this study reveals that honesty in crisis management does not always offer an advantage. The results indicate that value is multidimensional, and it may not be based on trust and ethics in the short run.

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“…By investing in the dissemination of seemingly credible messages about the quality of their products, the processors engaged in what is technically known as obfuscation. The net effect of obfuscation is to increase quality verification costs for the consumer (Verbeke, 2005;Gabaix and Laibson, 2006;Ellison and Wolitzky, 2009;Stivers, 2009). Though many experts were beginning to sound the alarm about the various nutritional deficiencies induced by food processing, the prominent presence of similar-sounding (and rarely demonstrably false) proclamations on the other side made it difficult for the ordinary consumer to know which products were, in fact, nutritionally superior.…”

Section: Food Safety As Hidden Qualitymentioning

confidence: 99%