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5.2. Policy Implications

The analysis in this paper provides a new window of opportunity for development on the studies of credence goods. The models presented are simple yet have potentials as it describes the current situation with regards to the accelerating growth of Halal food production. The analysis also helps to explain the situation for Halal demand in an economy which is dominated by conventional demand and production. The core of the study can be applied in practise if a producer decides on whether to transform the production into Halal, in order to obtain larger positive gains. However, these models only take into account of honest labelling by producers. Like other credence goods, labelling brings some issues to any credence goods including those of Halal products. These issues can be incorporated for future studies on Halal products as credence goods.