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Identification of Consumer Segments and Its Implication on the Willingness-to-Pay Distribution: The Case of Demand for Non-Genetically Modified Vegetable Oil in the United States

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  • Kaneko, Naoya
  • Chern, Wen S.

Abstract

This paper illustrates the importance of consumer segments for the estimation of the distribution of sample willingness to pay. We find evidence that those who prefer non-GM have a different marginal utility of income and that naïve pooling of consumer segments may yield a misleading recommendation for both agribusinesses and policy makers.

Suggested Citation

  • Kaneko, Naoya & Chern, Wen S., 2006. "Identification of Consumer Segments and Its Implication on the Willingness-to-Pay Distribution: The Case of Demand for Non-Genetically Modified Vegetable Oil in the United States," 2006 Annual meeting, July 23-26, Long Beach, CA 21194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21194
    DOI: 10.22004/ag.econ.21194
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    1. Chern, Wen S. & Kaneko, Naoya, 2007. "Some Problems in Estimating Willingness to Pay with Contingent Valuation Surveys: Case for Consumer Acceptance of Genetically Modified Food," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34852, Southern Agricultural Economics Association.

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