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Alternative Calibration And Auction Institutions For Predicting Consumer Willingness-To-Pay For Non-Genetically Modified Corn Chips

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Author Info

  • Lusk, Jayson L.
  • Daniel, M. Scott
  • Mark, Darrell R.
  • Lusk, Christine L.

Abstract

This study explores two important issues in experimental economics: calibration and auction institution. Consumer willingness-to-pay bids for corn chips made with non-genetically modified ingredients are elicited from a 1st price and 2nd price auction. Results suggest that responses to scale differential questions, in a survey, accurately predict consumer willingness-to-pay bids. The 2 nd price auction induces a greater percentage of marginal bidders to offer a positive bid than a 1st price auction. However, average bid levels in the 1st and 2nd price auctions were not statistically different from one other. In a small and unrepresentative sample, 70 percent of student participants were unwilling to pay to exchange a bag of genetically modified corn chips for a bag of non-genetically modified corn chips. However, 20 percent of respondents were willing to pay at least $0.25/oz for the exchange.

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Bibliographic Info

Paper provided by Western Agricultural Economics Association in its series 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia with number 36424.

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Date of creation: 2000
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Handle: RePEc:ags:waeava:36424

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Web page: http://waeaonline.org/
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Related research

Keywords: Consumer/Household Economics; Demand and Price Analysis;

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References

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