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Are Consumers in Developing Countries Willing to Pay More for Micronutrient-Dense Biofortified Foods? Evidence from a Field Experiment in Uganda

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  • Shyamal Chowdhury
  • J. V. Meenakshi
  • Keith I. Tomlins
  • Constance Owori

Abstract

Vitamin A deficiency is a major health problem in Africa and in many other developing countries. Biofortified staple crops that are high in pro-vitamin A have the potential to reduce the prevalence of vitamin A deficiency. Using a choice experiment with the real product in Uganda, we quantify the magnitude of the premium or discount in consumers' willingness-to-pay (WTP) that may be associated with it. Results suggest that taste plays an important role in consumer acceptance, and the provision of nutrition information does translate into substantial premiums for the biofortified variety. There is a substantial hypothetical bias in the WTP for the new varieties, and while cheap talk mitigates this bias, it does not eliminate it. Copyright 2010, 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): 93 (2010)
Issue (Month): 1 ()
Pages: 83-97

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Handle: RePEc:oup:ajagec:v:93:y:2010:i:1:p:83-97

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  1. Frykblom, Peter, 1997. "Hypothetical Question Modes and Real Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 275-287, November.
  2. Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
  3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, October.
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  6. Li Quan & McCluskey Jill J & Wahl Thomas I., 2004. "Effects of Information on Consumers' Willingness to Pay for GM-Corn-Fed Beef," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(2), pages 1-18, May.
  7. McGuirk, Anya M. & Driscoll, Paul J. & Alwang, Jeffrey Roger & Huang, Huilin, 1995. "System Misspecification Testing And Structural Change In The Demand For Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  8. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
  9. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
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Cited by:
  1. Moser, Riccarda & Raffaelli, Roberta & Notaro, Sandra, 2010. "The Role Of Production Methods In Fruit Purchasing Behaviour: Hypothetical Vs Actual Consumers’ Preferences And Stated Minimum Requirements," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116426, European Association of Agricultural Economists & Agricultural and Applied Economics Association.
  2. Birol, Ekin & Asare-Marfo, Dorene & Karandikar,Bhushana & Roy, Devesh, 2011. "A latent class approach to investigating farmer demand for biofortified staple food crops in developing countries: The case of high-iron pearl millet in Maharashtra, India," HarvestPlus Working Papers 7, International Food Policy Research Institute (IFPRI).

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