How food labels and social nudges change market outcomes for vertically farmed products: An experimental economics study through the lens of artefactual markets

Lead Applicant: Tongzhe Li

Research Priority: Competitive Production Systems

Program Type: Tier 1

Funding Cycle: 2024/2025

Research Centre: NA

Research Summary: This research proposes to study how consumers respond to vertically farmed products across Canada. Using behavioural and experimental economics, we will create artefactual markets in different regions of Canada to collect data from representative consumers. We will quantify how different food labels and various social nudge scenarios influence consumers’ food attitudes and willingness to pay for vertically farmed products. By identifying the treatment effects of these food labels and social nudges, our evidence-based results can benefit the Ontario agri-food sector and beyond by providing insights into product labeling and market designs of vertically farmed products. This will support the province’s and its trade partners’ needs by offering both urban and rural perspectives on diverse agri-food products. Moreover, this research will help inform policymakers on what instruments can best achieve their goals to stimulate the economy and improve consumers’ and producers’ welfare.