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Weak Aversion to GM Foods: Experimental Evidence from India

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  • Sangeeta Bansal

    ()
    (Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi)

  • Sujoy Chakravarty

    ()
    (Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi)

  • Bharat Ramaswami

    ()
    (Planning Unit, Indian Statistical Institute. New Delhi)

Abstract

The paper makes two important contributions to the literature studying consumer attitudes towards genetically modified foods. First, it elicits willingness- to- pay for similar food products that differ only in their content of GMOs. Second and more importantly, it examines how probabilistic information matters in the formation of food preferences. The paper advances a definition of consumers who are weakly GM averse, i.e., those who do not react to probabilistic information unless it comes in the form of a label. An experiment involving auctions of food products is designed to estimate weak GM aversion on the part of such consumers. In our experiment, about one-fifth of GM averse subjects are weakly averse. Presence of such consumers may have implications for the potential market size for labeled GM foods.

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Paper provided by Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India in its series Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers with number 10-02.

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Length: 32 pages
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Handle: RePEc:ind:citdwp:10-02

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Web page: http://www.jnu.ac.in/Academics/Schools/SchoolOfInternationalStudies/CITD/
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  1. Kirchhoff, Stefanie & Zago, Angelo M., 2001. "A Simple Model Of Voluntary Vs Mandatory Labelling Of Gmos," 2001 Annual meeting, August 5-8, Chicago, IL 20540, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Gruere, Guillaume P., 2006. "A preliminary comparison of the retail level effects of genetically modified food labelling policies in Canada and France," Food Policy, Elsevier, vol. 31(2), pages 148-161, April.
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