Abstract It is particular phenomena in China and other transformation countries that consumers have low trust on Eco-label. Based on market signal theory and using real modeling, the essay finds that low trust on eco-label won’t make the green food market disappear, but will lead the market to pooling equilibrium. The eco-label will become index. Consumers will make choice on both eco-label and brand. So, the small brand won’t get green premium. The revelation is that the low trust on eco-label will affect the small firm invest on eco-label.
2015, Vol. 32 
