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Local, Organic, Conventional— Asymmetric Effects of Information and Taste on Label Preferences in an Experimental Auction

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  • Costanigro, Marco
  • Kroll, Stephan
  • Thilmany, Dawn D.

Abstract

We endowed consumers with conventional apples and auctioned local, organic and organic-local apples to elicit consumers’ valuation and the response to two experimental treatments: scientific information and taste. For both labels, which participants valued as partial substitutes, positive WTP is conditional on distrusting the governmental food agencies. Information documenting the inconclusive scientific evidence in favor of organic and local production has little effect; while participants with positive valuation reacted to organoleptic characteristics only when the new information favored the labeled apples. The observed behavior is more consistent with polarization against conventional products, rather than in favor of local and organic.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA with number 123199.

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Date of creation: 2012
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Handle: RePEc:ags:aaeafe:123199

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Keywords: Food Consumption/Nutrition/Food Safety;

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References

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  1. Nalley, Lawton Lanier & Hudson, Darren & Parkhurst, Gregory M., 2006. "Consistency of Consumer Valuation Under Different Information Sets: An Experimental Auction with Sweet Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(03), November.
  2. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, 07.
  3. Marco Costanigro & Dawn Thilmany McFadden & Stephan Kroll & Gretchen Nurse, 2011. "An in‐store valuation of local and organic apples: the role of social desirability," Agribusiness, John Wiley & Sons, Ltd., vol. 27(4), pages 465-477, 09.
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  5. Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  6. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
  7. Hurley, Terrance M. & Yue, Chenyan & Anderson, Neil O., 2013. "Polarized Preferences in Homegrown Value Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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  12. Yuko Onozaka & Dawn Thilmany Mcfadden, 2011. "Does Local Labeling Complement or Compete with Other Sustainable Labels? A Conjoint Analysis of Direct and Joint Values for Fresh Produce Claim," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 689-702.
  13. Feng Zhang & Chung L. Huang & Biing-Hwan Lin & James E. Epperson, 2008. "Modeling fresh organic produce consumption with scanner data: a generalized double hurdle model approach," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 510-522.
  14. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
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  16. John C. Bernard & Daria J. Bernard, 2007. "What Is It About Organic Milk? An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 826-836.
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Cited by:
  1. Schmit, Todd M. & Taber, John T. & Rickard, Bradley J., 2012. "Consumer valuation of environmentally friendly production practices in wines considering asymmetric information and sensory effects," Working Papers 128813, Cornell University, Department of Applied Economics and Management.

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