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Valuing Animal Welfare Labels with Experimental Auctions: What do we learn from Consumers?

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Listed:
  • Gracia, Azucena
  • Loureiro, Maria L.
  • Nayga, Rodolfo M., Jr.

Abstract

In this paper two types of experimental auctions (endowment and full bidding) are used to elicit consumer preferences towards different labels providing information on animal welfare practices. The three types of labeling schemes evaluated are the comprehensive “animal welfare label”, the “good animal housing”, and the “good human-animal relation and transport conditions”. Our results suggest that there are no statistically significant differences in the elicited values across labelling schemes. However, there are clear differences across auction types. Bids elicited from auctions in which participants were endowed with the product are higher than those from auctions in which participants had to fully bid for the product. Recommendations and policy implications derived from our findings are discussed.

Suggested Citation

  • Gracia, Azucena & Loureiro, Maria L. & Nayga, Rodolfo M., Jr., 2009. "Valuing Animal Welfare Labels with Experimental Auctions: What do we learn from Consumers?," 2009 Conference, August 16-22, 2009, Beijing, China 51918, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51918
    DOI: 10.22004/ag.econ.51918
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    References listed on IDEAS

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    1. Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001. "A random nth-price auction," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 409-421, December.
    2. Ty Feldkamp & Ted C. Schroeder, 2004. "Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 389-405.
    3. repec:ken:wpaper:0601 is not listed on IDEAS
    4. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer willingness to pay for farm animal welfare: mobile abattoirs versus transportation to slaughter," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(3), pages 321-344, September.
    5. Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 448-457.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Li, Hao & Elbakidze, Levan, 2016. "Application of Regression Discontinuity Approach in Experimental Auctions: A Case Study of Gaining Participants’ Trust and Their Willingness to Pay," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236149, Agricultural and Applied Economics Association.
    2. Francesca Gerini & Frode Alfnes & Alexander Schjøll, 2016. "Organic- and Animal Welfare-labelled Eggs: Competing for the Same Consumers?," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 471-490, June.
    3. McKendree, Melissa G.S. & Olynk Widmar, Nicole & Ortega, David L. & Foster, Kenneth A., 2013. "Consumer Preferences for Verified Pork-Rearing Practices in the Production of Ham Products," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-21.
    4. repec:oup:apecpp:v:40:y:2018:i:3:p:502-521. is not listed on IDEAS

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