ABSTRACT
Mainstream economists would have us believe that consumers seek out the lowest price for goods of any given quality, maximizing their individual gains. But how then do we explain why millions of consumers around the world are now choosing certified Fair Trade products instead of other often cheaper options? Are they actively “voting with their money” for a different model of global trade that is tangibly “fairer” than conventional trade? Further, traditional economic logic tells us that producers seek to maximize their competitive advantage over others in a zero sum game of winners and losers in the global marketplace. How do we then explain the systematic assistance that early participants in Fair Trade provide to subsequent entrants into this dynamic market? Are Fair Trade certified producers replacing competition with solidarity? Finally, mainstream economists also tell us that corporations will always purchase products at the lowest possible price, bargaining down their input costs where possible through competitive sourcing. Why then would an increasing number of companies, both large and small, willingly participate in a system where they must pay a price negotiated by a third party, well above the conventional price, for products that are produced under Fair Trade standards?
