Effects of food additives information on consumers’ risk perceptions and willingness to accept: Based on a random nth-price auction

In this study, we used a random nth-price auction to estimate consumers’ willingness to accept (WTA) when exchanging orange juice containing additives for freshly squeezed orange juice without additives. Also, we analyzed the effects of positive and negative information of orange juice additives on consumers’ risk perceptions. In summary, three basic findings are obtained. a. Negative information of orange juice additives is given a higher weight by consumers; consumers with some knowledge about additives, rather than those without knowledge about additives, have a higher WTA. b. Consumers with the information processing capacity, concern about the health of themselves and their families, and the ability to foresee the consequences of information have a deep impact on their WTA. c. The initial bid has a significant anchoring effect on consumers’ WTA. As a result, there are three effective approaches to eliminate consumer food scares. The first is to disclose information about food safety risks timely and accurately. The second is to prevent the misguidance by the media, especially the internet media. The third is to employ different communication strategies based on the differences among consumer groups.