英语论文网

Hence these provide a basis of which is better suited for the Halal market in the economy of Muslim-minority economies, such as in the United Kingdom and other European countries.

Equivalent to Equation (2) in obtaining reservation price schedule for conventional product, the aggregate reservation price schedule for Halal product is,where for , and for . Equation (4) is different from that of Equation (2) as in the former, as there exists a fixed intercept shifter between reservation price loci. This is the WTP a ‘premium' for the Halal product.

Producers' production functions are constant return to scale, but when output increases, input costs rise indicating the supplies for both conventional and Halal product are inelastic. The relationship between marginal cost and quantity supplied by the former products' industry is therefore,

where is the intercept, is the slope of marginal costs of conventional products industry in terms of the industry output. Hence, the above equation is the supply function for conventional product. On the other hand, the marginal cost and quantity supplied relationship of Halal industry is, where is the intercept, indicates the slope of marginal cost in market share, represents a fixed unit labelling cost.

4.1.1. Equilibrium with certified Halal logo

It is obvious that when a producer has a certified (high-quality) logo or labelling, it separate itself from the conventional products which do not have a quality related logo. This is also the case of having certified Halal logo. Again, following model by Hoehn and Deaton (2004) of separating equilibrium, that demand of conventional product market is conditional on the availability of the (relative) Halal products. In other words, conventional market losses the x unit when consumer purchases x unit of Halal goods. Hence, conventional products demand is a conditional, residual demand. In practise, this reflects the demand by secondary (non-Muslim) consumers, as they can consumer either Halal or conventional products but prefer the sooner, in this sense.

From the above conditions, the conventional product residual demand is the conventional product demand (from Equation (1)) less consumer demand reallocated to the credence market (first line, second term of Equation (4)). Mathematically this is shown as,where is the prevailing price of Halal product with certified logo. Equivalently, the residual reservation price schedule for conventional product's market is the reservation price which is reduced by the amount of conventional good which consumers reallocate to the Halal market, ie. . Hence, the residual price for conventional product is

The second line in the above equation (8) is obtained by adding and subtracting to the first line followed by substituting the re本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。