Files
Abstract
Labeling of genetically modified (GM) foods is a contentious issue and internationally, there is
sharp division whether such labeling ought to be mandatory. This debate has reached India where the
government has proposed mandatory labeling. In this context, this paper evaluates the optimal regulatory
approach to GM food labels. Mandatory labeling aims to provide greater information and correspondingly
more informed consumer choice. However, even without such laws, markets have incentives to supply
labeling. So can mandatory labeling achieve outcomes different from voluntary labeling? The paper
shows that this is not the case in most situations. The paper goes on to explore the special set of
circumstances, where mandatory labeling makes a difference to outcomes. If these outcomes are
intended, mandatory labeling is justified; otherwise not.