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It can be seen that by introducing Halal labelling, it is likely to increase the consumption of such products. In a market where price is not controlled (in Section 4.1.), the introduction of Halal labelling will create a price premium, at the same time, generate greater overall quantity demanded for Halal products. This brings a greater welfare to producers and consumer shown by the producer and consumer surplus respectively. For a market in which introduction of Halal logo does not produces a price premium (in Section 4.2.), such as a franchise, these surpluses are also greater compared to the conventional products, as long as the portion of transformable products dominate non-transformable, otherwise larger opportunity cost incurred from transformation. Hence, welfare in both environments (normal market and franchise) are greater from introduction of Halal products compared those when only conventional products are produced.

CHAPTER 5

5.0. Final Annotations

This final chapter is divided into two sections. The first section concludes the analysis of this paper where results are briefly discussed. This is followed by a section which covers the policy implications of the analysis, which gives a view of the models if it can be used practically and for future developments.

5.1. Conclusions

Credence goods are those which the quality cannot be observed by consumers even after consumption. Among many credence goods, Halal product can be seen as a special type of credence good. Production of Halal products opens up an additional market, which is referred in this paper as primary market of Muslims consumers as they only consume Halal products. Primary market exists with the secondary market of Halal which the later is the result of consumers demand which reallocate from consuming conventional non-Halal products to those of Halal. The analysis is better fit for Muslim-minority economies, such as the United Kingdom.

Producer may take the opportunity to produce Halal products based on the higher producer welfare that would be generated from a price premium. This is the situation when the market becomes separated, with price of conventional goods being relatively lower. Adapting to the study of Halal market in similar environment also produces the same outcomes, but with interaction from the effect of primary consumers give clear distinctions that resulted in greater welfare effects

In another analysis, different configuration involving the absent of premium pricing from Halal labelling is presented. In this case, initially producers may hesitate to produce or transform production into that of Halal due to the lower expected demand with same price. Nonetheless, this view does not look into additional primary consumers demand. Considering this additional factor, producers would have the incentives totransform their production from conventional to Halal produc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。