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Labeling Context and Reference Point Effects in Models of Food Attribute Demand

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  • Wuyang Hu
  • Wiktor L. Adamowicz
  • Michele M. Veeman

Abstract

There is considerable interest in the effect of labels on food product demand. Labeling statements may convey new information about attributes and place consumers in different choice contexts; consumers' assessment of information in labels may be affected by reference points. We examine labeling context relating to genetically modified (GM) food as a factor in the stochastic component of a random utility model and assess reference points over a set of observable characteristics of consumers. We find that labeling context effects are present, although relatively small, while reference dependence is a very important factor that varies over observable characteristics of the sampled consumers. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 88 (2006)
Issue (Month): 4 ()
Pages: 1034-1049

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Handle: RePEc:oup:ajagec:v:88:y:2006:i:4:p:1034-1049

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Cited by:
  1. Carlsson, Fredrik, 2009. "Design of stated preference surveys: Is there more to learn from behavioral economics?," Working Papers in Economics 418, University of Gothenburg, Department of Economics.
  2. Morkbak, Morten Raun & Jensen, Jorgen Dejgaard, 2012. "Do consumers’ preferences change when on vacation? A willingness to pay study on apples and honey," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123525, Agricultural and Applied Economics Association.
  3. Bateman, Ian J. & Burgess, Diane & Hutchinson, W. George & Matthews, David I., 2008. "Learning design contingent valuation (LDCV): NOAA guidelines, preference learning and coherent arbitrariness," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 127-141, March.
  4. Marcela Ibanez & Fredrik Carlsson, 2009. "A survey-based choice experiment on coca cultivation," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 17, Courant Research Centre PEG.
  5. Hu, Wuyang, 2007. "A Choice Model with Systematic Structures in Decision Weights," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(03), December.
  6. Bateman, Ian J. & Day, Brett H. & Jones, Andrew P. & Jude, Simon, 2009. "Reducing gain-loss asymmetry: A virtual reality choice experiment valuing land use change," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 106-118, July.
  7. Amnon Levy, 2011. "Physiological, Gastronomic and Budgetary Aspects and the Diets of Perfectly and Imperfectly Lifetime-Rational Consumers," Economics Working Papers wp11-13, School of Economics, University of Wollongong, NSW, Australia.
  8. Hu, Wuyang, 2006. "Effects of Endogenous Task Complexity and the Endowed Bundle on Stated Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21437, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Hu, Wuyang & Woods, Timothy A. & Bastin, Sandra & Cox, Linda J. & You, Wen, 2011. "Assessing Consumer Willingness to Pay for Value-Added Blueberry Products Using a Payment Card Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(02), May.
  10. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.

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