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An experimental approach to valuing new differentiated products

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  • Maynard, Leigh J.
  • Hartell, Jason G.
  • Meyer, A. Lee
  • Hao, Jianqiang

Abstract

An experimental store was created to evaluate initial demand for locally-produced and guaranteed tender steak products as a more realistic alternative to contingent valuation (CV) and dichotomous-choice experimental methods. Strengths of the approach are incentive compatibility, a realistic consumption set, and a familiar choice environment. Consumers selected among USDA Choice, premium quality, lean, guaranteed tender, and locally-produced strip steaks. A double-hurdle count data model indicated initial willingness-to-pay for locally-produced steak comparable to prior CV results, but demand was highly elastic. Demand for premium quality steak crowded out demand for the guaranteed tender product, contrasting with prior dichotomous-choice experimental results.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 31 (2004)
Issue (Month): 2-3 (December)
Pages: 317-325

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Handle: RePEc:eee:agecon:v:31:y:2004:i:2-3:p:317-325

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References

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Citations

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Cited by:
  1. Yan, Jiong & Barkmann, Jan & Marggraf, Rainer, 2007. "Chinese tourist preferences for nature based destinations: a choice experiment analysis," DARE Discussion Papers 0706, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
  2. Fischer, Anke & Hanley, Nicholas & Lowassa, Asanterabi & Milner-Gulland, Eleanor J & Moro, Mirko & Naiman, Loiruck C, 2014. "An investigation of the determinants of household demand for bushmeat in the Serengeti using an open-ended choice experiment," Stirling Economics Discussion Papers 2014-07, University of Stirling, Division of Economics.
  3. Avitia, Jessica & Costa-Font, Montserrat & Gil, Jose Maria & Lusk, Jayson L., 2011. "A Calibrate Auction-conjoint Experiment to Elicit Consumer Valuation of Sustainable Farming: Is Agro-systems Preservation Relevant?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114213, European Association of Agricultural Economists.
  4. Silva, Andres & Nayga, Rodolfo M., Jr. & Campbell, Benjamin L. & Park, John L., 2011. "Revisiting Cheap Talk with New Evidence from a Field Experiment," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), August.
  5. Maynard, Leigh J. & Wang, Xin, 2009. "Context-Dependent BSE Impacts on Canadian Food-at-Home Beef Purchases," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48431, Agricultural and Applied Economics Association.
  6. Maynard, Leigh J. & Burdine, Kenneth H. & Meyer, A. Lee, 2003. "Market Potential for Locally Produced Meat Products," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(02), July.

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