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Health benefits and uncertainty: an experimental analysis of the effects of risk presentation on auction bids for a healthful product

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  • W. Douglass Shaw

    (Texas A&M University)

  • Andres Silva

    (Texas A&M University)

  • Rodolfo M. Nayga, Jr.

    (Texas A&M University)

Abstract

Experimental subjects receive a different presentation of a food product's potential health risk reductions if eaten regularly. They are then asked to bid for the product. Results suggest that the bids vary across the groups that receive differing risk information.

Suggested Citation

  • W. Douglass Shaw & Andres Silva & Rodolfo M. Nayga, Jr., 2006. "Health benefits and uncertainty: an experimental analysis of the effects of risk presentation on auction bids for a healthful product," Economics Bulletin, AccessEcon, vol. 4(20), pages 1-8.
  • Handle: RePEc:ebl:ecbull:eb-06d80008
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    References listed on IDEAS

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    Cited by:

    1. Silva, Andres & Nayga, Rodolfo M., Jr. & Campbell, Benjamin L. & Park, John L., 2007. "On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-16.
    2. Azucena GRACIA & Tiziana DE-MAGISTRIS, 2015. "The role of participants' competitiveness in consumers' valuation for food products using experimental auctions," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 484-491.
    3. Nayga, Rodolfo M., Jr. & Shaw, W. Douglass & Silva, Andres, 2006. "The Effect of Risk Presentation on Product Valuation: An Experimental Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21429, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Shaw, W. Douglass & Woodward, Richard T., 2008. "Why environmental and resource economists should care about non-expected utility models," Resource and Energy Economics, Elsevier, vol. 30(1), pages 66-89, January.
    5. Melkonyan, Tigran A., 2011. "The Effect of Communicating Ambiguous Risk Information on Choice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-21, August.

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    More about this item

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I1 - Health, Education, and Welfare - - Health

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