... marketing and seg-regation costs, the lower the consumer welfare underlabeling of GMPs, the lower the consumer demand for conventional product, and the greater the demand for organic product. For ... of the market. In this case, the consumption share of the GM product, x gm , is deter-mined by the intersection of the U gm and Uc utilitycurves (i.e., x gm :U gm = Uc) and equalsx gm ... expectations, the probability that the nonlabeled product is GM reflects the share of the GM product in total production of the nonlabeled good. The greater the production share of the GM version of the...