... of labelling under imperfect certification. Environment Eco-Labelling Incomplete information Vertical differentiation Imperfect Certification Consumers’ concern for the environment has grown in recent years. This concern is getting translated into their willingness to pay for environmental...

... market. However, using outsourced inputs involves a fixed cost at the plant level. The model solves for perfect Bayesian equilibrium. Findings There are situations when under complete information, outsourcing of the input will not occur, but, under incomplete information, either only the low-cost...