Risk-learning process in forming willingness-to-pay for egg safety
AbstractUsing data obtained from a mail survey on consumers' willingness-to-pay (WTP) and risk beliefs for reducing the risk of salmonella contamination of eggs, we have examined the risk-learning process through which individuals form their WTP. The results of estimation of the WTP function support the hypothesis that respondents follow an adaptive learning process, in which they establish their posterior risk belief in a rational manner by adapting their prior risk belief as they are supplied with new risk information. We find that the weight of the prior risk belief is slightly smaller than that of new risk information in forming the posterior risk belief for three out of four estimation models. Knowledge of how consumers form their risk beliefs and who evaluates egg safety enables us to clearly specify targets for effective campaigns to enhance public awareness at a household level about health and food safety issues. [EconLit citations: D120, Q260.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 167-179, 2004.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Agribusiness.
Volume (Year): 20 (2004)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297
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.:
- Dickie, Mark & Gerking, Shelby, 1996.
"Formation of Risk Beliefs, Joint Production and Willingness to Pay to Avoid Skin Cancer,"
The Review of Economics and Statistics,
MIT Press, vol. 78(3), pages 451-63, August.
- Dickie, M. & Gerking, S., 1993. "Formation of Risk Beleifs, Joint Production and Willingness to Pay to Avoid Skin Cancer," Papers 398e, Georgia - College of Business Administration, Department of Economics.
- Dickie, M. & Gerking, S.D., 1996. "Formation of risk beliefs, joint production and willingness to pay to avoid skin cancer," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742868, Tilburg University.
- Becker, Gary S, 1974.
"A Theory of Social Interactions,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
- Pollak, Robert A, 1998. "Imagined Risks and Cost-Benefit Analysis," American Economic Review, American Economic Association, vol. 88(2), pages 376-80, May.
- Viscusi, W Kip, 1991. "Age Variations in Risk Perceptions and Smoking Decisions," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 577-88, November.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- John C. Whitehead, 1995. "Willingness to Pay for Quality Improvements: Comparative Statics and Interpretation of Contingent Valuation Results," Land Economics, University of Wisconsin Press, vol. 71(2), pages 207-215.
- Harrington, Winston & Portney, Paul R., 1987. "Valuing the benefits of health and safety regulation," Journal of Urban Economics, Elsevier, vol. 22(1), pages 101-112, July.
- Viscusi, W Kip & O'Connor, Charles J, 1984. "Adaptive Responses to Chemical Labeling: Are Workers Bayesian Decision Makers?," American Economic Review, American Economic Association, vol. 74(5), pages 942-56, December.
- Dickie, M. & Gerking, S.D., 1991. "Valuing reduced morbidity: A household production approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742834, Tilburg University.
- Evans, William N & Viscusi, W Kip, 1991. "Estimation of State-Dependent Utility Functions Using Survey Data," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 94-104, February.
- Smith, V Kerry & Johnson, F Reed, 1988. "How Do Risk Perceptions Respond to Information? The Case of Radon," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 1-8, February.
- W. Kip Viscusi & William N. Evans, 1998. "Estimation Of Revealed Probabilities And Utility Functions For Product Safety Decisions," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 28-33, February.
- Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-74, June.
- Goddard, Ellen W. & Boxall, Peter C. & Emunu, John Paul & Boyd, Curtis & Asselin, Andre & Neall, Amanda, 2007. "Consumer Attitudes, Willingness to Pay and Revealed Preferences for Different Egg Production Attributes: Analysis of Canadian Egg Consumers," Project Report Series 52087, University of Alberta, Department of Resource Economics and Environmental Sociology.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.