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Who Do Consumers Trust for Information? The Case of Genetically Modified Foods

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  • Huffman, Wallace
  • Rousu, Matthew
  • Shogren, Jason F.
  • Tegene, Abebayehu

Abstract

To be effective, groups that disseminate information need the trust of consumers. When multiple groups provide conflicting information on a new product or process like GM-foods, consumers place different levels of trust in the various sources. We present a model of the contributions of personal and social capital of a consumer, and test a multinominal logit model of relative trust in five different sources of information on genetic modification using a unique data set. Among our findings is that an increase in consumer's education lowers the probability of trusting information from government, private industry/organizations, consumer and environmental groups, or other sources relative to information from an independent, third-party source, and conservative religious affiliation reduces the odds of a consumer trusting private industry/organization and increases the odds of trusting nobody relative to an independent, third-party source.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10061.

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Date of creation: 03 Dec 2002
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Publication status: Published in American Journal of Agricultural Economics, November 2004, vol. 86, pp. 1222-1229
Handle: RePEc:isu:genres:10061

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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  1. Huffman, Wallace E. & Tegene, Abebayehu, 2002. "Public Acceptance of and Benefits from Agricultural Biotechnology: A Key Role for Verifiable Information," Staff General Research Papers 10435, Iowa State University, Department of Economics.
  2. Timothy F. Bresnahan & Robert J. Gordon, 1996. "The Economics of New Goods," NBER Books, National Bureau of Economic Research, Inc, number bres96-1, Ekim.
  3. Huffman, Wallace E, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 91(1), pages 59-79, February.
  4. Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters, in: The Economics of New Goods, pages 207-248 National Bureau of Economic Research, Inc.
  5. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
  6. Kinsey, Jean D. & Wolfson, Paul J. & Katsaras, Nikolaos & Senauer, Benjamin, 2001. "Data Mining: A Segmentation Analysis Of U.S. Grocery Shoppers," Working Papers 14335, University of Minnesota, The Food Industry Center.
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Citations

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Cited by:
  1. Zalewski, Romuald I. & Skawinska, Eulalia, 2006. "Food Safety. Commodity Science Point of View," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25734, International Association of Agricultural Economists.
  2. Huffman, Wallace & Shogren, J. E. & Rousu, M. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Staff General Research Papers 12256, Iowa State University, Department of Economics.
  3. Joan Costa-Font & Elias Mossialos, 2005. "Is dread of Genetically Modified food associated with the consumers' demand for information?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 859-863.
  4. Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
  5. Melkonyan, Tigran A., 2011. "The Effect of Communicating Ambiguous Risk Information on Choice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), August.
  6. Veeman, Michele M. & Adamowicz, Wiktor L. & Hu, Wuyang, 2005. "Risk Perceptions, Social Interactions and the Influence of Information on Social Attitudes to Agricultural Biotechnology," Project Report Series 24052, University of Alberta, Department of Resource Economics and Environmental Sociology.
  7. Lang, John T., 2013. "Elements of public trust in the American food system: Experts, organizations, and genetically modified food," Food Policy, Elsevier, vol. 41(C), pages 145-154.
  8. Zhao, Li & Gu, Haiying & Yue, Chengyan & Ahlstrom, David, 2013. "Consumer welfare and GM food labeling: A simulation using an adjusted Kumaraswamy distribution," Food Policy, Elsevier, vol. 42(C), pages 58-70.
  9. Noussair, C.N. & Soest, D.P. van, 2014. "Economic Experiments and Environmental Policy: A Review," Discussion Paper, Tilburg University, Center for Economic Research 2014-001, Tilburg University, Center for Economic Research.
  10. Liu, Pengcheng, 2009. "Consumers’ WTA for GM rice cookie: an experiment study in China," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51771, International Association of Agricultural Economists.
  11. O. Ashton Morgan & John C. Whitehead & William L. Huth & Gregory S. Martin & Richard Sjolander, 2013. "A Split-Sample Revealed and Stated Preference Demand Model to Examine Homogenous Subgroup Consumer Behavior Responses to Information and Food Safety Technology Treatments," Working Papers 13-06, Department of Economics, Appalachian State University.
  12. Rousselière, D. & Rousselière, S., 2009. "On the impact of trust on consumer willingness to purchase GM food : evidence from a European survey," Working Papers, Grenoble Applied Economics Laboratory (GAEL) 200901, Grenoble Applied Economics Laboratory (GAEL).
  13. O. Ashton Morgan & Gregory S. Martin & William L. Huth, 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Working Papers 09-08, Department of Economics, Appalachian State University.
  14. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
  15. Novoselova, Tatiana A. & van der Lans, Ivo A.C.M. & Meuwissen, Miranda P.M. & Huirne, Ruud B.M., 2005. "Consumer Acceptance of GM Applications in the Pork Production Chain: A Choice Modelling Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24527, European Association of Agricultural Economists.

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