The problem of adverse selection on the food market, associated with the use of the genetically modified organisms [GMO], and the special features of its solution
This paper deals with the problem of foods, associated with the use of the genetically modified organisms, available on the food market. Empirical research conducted by the authors reveals low consumers’ awareness of GMOs and risks of consumption foods, containing GMOs, negative attitude towards GMOs of the vast majority of Russians. Consumers do not regard labels as the main factor in making food consumption choices. Under these conditions, Russian state food policy, which aim is to ensure individual’s right to choice, availability of legislative regulations, conferring the right to information, are insufficient to secure this right. The requirement to label foods with GMOs does not guarantee the availability of exact information to consumers because producers of GM foods lack incentives to such signaling. Collective actions of consumers could help to develop such incentives. Performance of noncommercial organizations, a number of effective channels of information distribution, aimed at developing proper consumption culture, and, as a result, developing new determinants of demand; non-commercial laboratories, which allow reducing consumer’s costs of determining food quality could serve as a basis for such actions.