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Valuing Ambiguity: The Case Of Genetically Engineered Growth Enhancers

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Author Info
Buhr, Brian L.
Hayes, Dermot J.
Shogren, Jason F.
Kliebenstein, James B.

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Abstract

A split-valuation method is developed and implemented to elicit the willingness to pay to consume- or avoid consuming- a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The results show that the method can be used to successfully value a good ambiguous quality. Our application reveals that for a sample of students at a midwestern land-grant institution, the average respondent is willing to pay a premium for meat produced with the use of a genetically engineered growth enhancer that has 30% to 60% fewer calories and is 10% to 20% leaner.

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File URL: http://purl.umn.edu/30963
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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 18 (1993)
Issue (Month): 02 (December)
Pages:
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Handle: RePEc:ags:jlaare:30963

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Keywords: Consumer/Household Economics;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Shogren, Jason F, 1990. " The Impact of Self-protection and Self-insurance on Individual Response to Risk," Journal of Risk and Uncertainty, Springer, vol. 3(2), pages 191-204, June.
  2. McKee, Michael, 1989. "Intra-experimental income effects and risk aversion," Economics Letters, Elsevier, vol. 30(2), pages 109-115, August. [Downloadable!] (restricted)
  3. Menkhaus, Dale J. & Borden, George W. & Whipple, Glen D. & Hoffman, Elizabeth & Field, Ray A., 1992. "An Empirical Application Of Laboratory Experimental Auctions In Marketing Research," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(01), July. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stéphane Robin & Anne Rozan & Bernard Ruffieux, 2007. "Mesurer les préférences du consommateur pour orienter les décisions des pouvoirs publics : l’apport de la méthode expérimentale," Working Papers 0723, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
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  2. Lusk, Jayson L. & Jamal, Mustafa & Kurlander, Lauren & Roucan, Maud & Taulman, Lesley, 2005. "A Meta-Analysis of Genetically Modified Food Valuation Studies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April. [Downloadable!]
  3. Alfnes, Frode, 2006. "Willingness To Pay Versus Expected Consumption Value In Vickrey Auctions For New Experience Goods," 2006 Annual meeting, July 23-26, Long Beach, CA 21211, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Evans, Jason R. & Brown, Cheryl & Collins, Alan R. & D'Souza, Gerard E. & Rayburn, Edward B. & Sperow, Mark, 2008. "Determining Consumer Perceptions of and Willingness to Pay or Appalachian Grass-fed Beef: An Experimental Economics Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6209, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Feuz, Dillon M. & Umberger, Wendy J. & Calkins, Chris R. & Killinger, Karen M., 2000. "Consumer Preference For Domestic Versus International Beef Steaks," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36385, Western Agricultural Economics Association. [Downloadable!]
  6. Lusk, Jayson L. & Norwood, F. Bailey & Pruitt, Ross, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35273, Southern Agricultural Economics Association. [Downloadable!]
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  7. Kaneko, Naoya & Chern, Wen S., 2004. "Willingness To Pay For Non-Genetically Modified Food: Evidence Of Hypothetical Bias From An Auction Experiment In Japan," 2004 Annual meeting, August 1-4, Denver, CO 20305, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Umberger, Wendy J. & Feuz, Dillon M. & Calkins, Chris R. & Kllinger, Karen M., 2000. "The Value Of Beef Flavor: Consumer Willingness-To-Pay For Marbling In Beef Steaks," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36397, Western Agricultural Economics Association. [Downloadable!]
  9. Feuz, Dillon M. & Umberger, Wendy J. & Calkins, Chris R. & Sitz, Bethany, 2004. "U.S. Consumers' Willingness to Pay for Flavor and Tenderness in Steaks as Determined with an Experimental Auction," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(03), December. [Downloadable!]
  10. Loureiro, Maria L. & Umberger, Wendy J., 2002. "Estimating Consumer Willingness-To-Pay For Country Of-Origin-Labels For Beef Products," 2002 Annual meeting, July 28-31, Long Beach, CA 19745, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  11. Chern, Wen & Kaneko, Naoya & Tarakcioglu, Gulay Babadogan, 2003. "Willingness to Pay for PEF-processed Orange Juice: Evidence from an Auction Experiment," 2003 Annual meeting, July 27-30, Montreal, Canada 21897, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Helen H. JENSEN & Peter BASIOTIS, 1993. "Food Safety/Food Quality Data," Emerging Data Issues in Applied Food Demand Analysis; s21693jens01, S216, Food Demand and Consumption Behavior Regional Committee. [Downloadable!]
    Other versions:
  13. Hine, Susan & Loureiro, Maria L., 2002. "Understanding Consumers' Perceptions Toward Biotechnology And Labeling," 2002 Annual meeting, July 28-31, Long Beach, CA 19898, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  14. Umberger, W.J. & Feuz, D.M. & Calkins, C.R. & Killinger, K.M., 2001. "Us Consumer Preference For Domestic Corn-Fed Versus International Grass-Fed Beef," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14543, International Agricultural Trade Research Consortium. [Downloadable!]
  15. Jay R. Corrigan & Matthew C. Rousu, 2006. "Posted Prices and Bid Affiliation: Evidence from Experimental Auctions," Working Papers 0602, Kenyon College, Department of Economics. [Downloadable!]
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  16. Jayson Lusk & Tomas Nilsson & Ken Foster, 2007. "Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 499-521, April. [Downloadable!] (restricted)
  17. Lusk, Jayson & Roosen, Jutta & Fox, John, 2001. "Demand For Beef From Cattle Administered Growth Hormones Or Fed Genetically Modified Corn: A Comparison Of Consumers In France, Germany, The United Kingdom, And The United States," 2001 Annual meeting, August 5-8, Chicago, IL 20684, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  18. Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," Working Papers 0601, Kenyon College, Department of Economics. [Downloadable!]
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