IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/201543.html
   My bibliography  Save this paper

Relational Goods and Direct Purchase from Farmers: Estimating the Value of the Relationship between Consumers and Producers

Author

Listed:

Abstract

Personal relationships can affect economic life and they may be even more important in Alternative Food Networks. We estimate the value of the relational good produced by the personal relationship in direct sales by farmers. This is relevant for assessing the importance of personal interaction in a typically economic behavior like food purchase. Drawing from theoretical considerations, we employ a stated preferences methodology to estimate the value consumers buying directly from farmers attach to their particular choice of vendor. We estimated a difference-in-utility model and a model based on the valuation function, using data from a consumer survey in open-air markets in four towns in Piedmont Region (Italy). Contingent on the chosen model, the average value is 10-12 percent of the consumers’ expenditure for fruits and vegetables, and up to 1.2-1.3 percent of their overall income.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Corsi, Alessandro & Novelli, Silvia, 2015. "Relational Goods and Direct Purchase from Farmers: Estimating the Value of the Relationship between Consumers and Producers," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201543, University of Turin.
    • Handle: RePEc:uto:dipeco:201543
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_43_2015.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gumirakiza, Jean Dominique & Curtis, Kynda R. & Bosworth, Ryan C., 2014. "Who Attends Farmers’ Markets and Why? Understanding Consumers and their Motivations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-18, May.
    2. Carroll, Kathryn A. & Bernard, John C. & Pesek, John D. Jr., 2013. "Consumer Preferences for Tomatoes: The Influence of Local, Organic, and State Program Promotions by Purchasing Venue," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-18.
    3. Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    4. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    5. Daniel L. McFadden, 1976. "Quantal Choice Analysis: A Survey," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 363-390, National Bureau of Economic Research, Inc.
    6. Luigino Bruni, 2010. "The happiness of sociality. Economics and eudaimonia: A necessary encounter," Rationality and Society, , vol. 22(4), pages 383-406, November.
    7. Onianwa, Okwudili O. & Wheelock, Gerald & Mojica, Maribel N., 2005. "An Analysis of the Determinants of Farmer-to-Consumer Direct-Market Shoppers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-5, March.
    8. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(1), pages 33-47, April.
    9. Govindasamy, Ramu & Nayga, Rodolfo M., Jr., 1997. "Determinants Of Farmer-To-Consumer Direct Market Visits By Type Of Facility: A Logit Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-8, April.
    10. Brown, Cheryl & Gandee, Jesse E. & D'Souza, Gerard E., 2006. "West Virginia Farm Direct Marketing: A County Level Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-10, December.
    11. Benedetto Gui, 2000. "Beyond Transactions: On the Interpersonal Dimension of Economic Reality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 71(2), pages 139-169, June.
    12. Brown, Cheryl & Gandee, Jesse E. & D'Souza, Gerard, 2006. "West Virginia Farm Direct Marketing: A County Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(3), pages 575-584, December.
    13. Pascucci, Stefano & Cicatiello, Clara & Franco, Silvio & Pancino, Barbara & Davide, Marino, 2011. "Back to the Future? Understanding Change in Food Habits of Farmers' Market Customers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-22, November.
    14. McCluskey, Jill J. & Loureiro, Maria L., 2005. "Reputation and Production Standards," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-11, April.
    15. Benedetto Rocchi & Filippo Randelli & Lorenzo Corsini & Sabina Giampaolo, 2020. "Farmer direct selling: the role of regional factors," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1112-1122, July.
    16. Rocchi, Benedetto & Cavicchi, Alessio & Baldeschi, M., 2010. "Consumers’ attitude towards farmers’ markets in Tuscany," 116th Seminar, October 27-30, 2010, Parma, Italy 95224, European Association of Agricultural Economists.
    17. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    18. Carole Uhlaner, 1989. "“Relational goods” and participation: Incorporating sociability into a theory of rational action," Public Choice, Springer, vol. 62(3), pages 253-285, September.
    19. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    20. Benedetto Gui & Luca Stanca, 2010. "Happiness and relational goods: well-being and interpersonal relations in the economic sphere," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 57(2), pages 105-118, June.
    21. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    22. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 206-213.
    23. Bruni, Luigino & Stanca, Luca, 2008. "Watching alone: Relational goods, television and happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 506-528, March.
    24. Moya Kneafsey & Laura Venn & Ulrich Schmutz & Balász Bálint & Liz Trenchard & Trish Eyden-Woods & Elizabeth Bos & Gemma Sutton & Matthew Blackett, 2013. "Short Food Supply Chains and Local Food Systems in the EU. A State of Play of their Socio-Economic Characteristics," JRC Research Reports JRC80420, Joint Research Centre.
    25. Abello, Francisco J. & Palma, Marco A. & Anderson, David P. & Waller, Mark W., 2012. "Evaluating the Factors Influecing the Number of Visits to Farmers' Markets," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119786, Southern Agricultural Economics Association.
    26. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Effect of distance of transportation on willingness to pay for food," Ecological Economics, Elsevier, vol. 88(C), pages 67-75.
    27. Simona Rasciute & Paul Downward & William H Greene, 2017. "Do Relational Goods Raise Well-Being? An Econometric Analysis," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(4), pages 563-579, September.
    28. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    29. Luigino Bruni & Pier Luigi Porta (ed.), 2016. "Handbook of Research Methods and Applications in Happiness and Quality of Life," Books, Edward Elgar Publishing, number 15606.
    30. Stefania Capecchi & Maria Iannario & Rosaria Simone, 2018. "Well-Being and Relational Goods: A Model-Based Approach to Detect Significant Relationships," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 729-750, January.
    31. Colombo, Emilio & Stanca, Luca, 2014. "Measuring the monetary value of social relations: A hedonic approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 77-87.
    32. Benedetto Rocchi, 2013. "Produzione agricola e beni relazionali," RIVISTA DI ECONOMIA AGRARIA, FrancoAngeli Editore, vol. 2013(3), pages 7-25.
    33. Leonardo Becchetti & Alessandra Pelloni & Fiammetta Rossetti, 2008. "Relational Goods, Sociability, and Happiness," Kyklos, Wiley Blackwell, vol. 61(3), pages 343-363, August.
    34. Kwamena K. Quagrainie & Jill J. McCluskey & Maria L. Loureiro, 2003. "A Latent Structure Approach to Measuring Reputation," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 966-977, April.
    35. Alessandro Corsi, 2007. "Ambiguity of measured WTP for quality improvements when quantity is unconstrained: a note," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(4), pages 501-515, December.
    36. Moro, Mirko & Brereton, Finbarr & Ferreira, Susana & Clinch, J. Peter, 2008. "Ranking quality of life using subjective well-being data," Ecological Economics, Elsevier, vol. 65(3), pages 448-460, April.
    37. Bateman, Ian J. & Willis, Kenneth G. (ed.), 2001. "Valuing Environmental Preferences: Theory and Practice of the Contingent Valuation Method in the US, EU , and developing Countries," OUP Catalogue, Oxford University Press, number 9780199248919, Decembrie.
    38. Onken, Kathryn A. & Bernard, John C. & Pesek, John D., Jr., 2011. "Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-15, April.
    39. Corsi, Alessandro & Novelli, Silvia & Pettenati, Giacomo, 2014. "Alternative Food Networks in Piedmont: determinants of on-farm and off-farm direct sales by farmers," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173035, Italian Association of Agricultural and Applied Economics (AIEAA).
    40. Gui,Benedetto & Sugden,Robert (ed.), 2005. "Economics and Social Interaction," Cambridge Books, Cambridge University Press, number 9780521848848.
    41. Bi-Kun Tsai & Ku-Yuan Lee & Chi-Ming Hsieh & Pimpinan Somsong, 2019. "Determinants of Actual Purchase Behavior in Farmers’ Markets," Sustainability, MDPI, vol. 11(19), pages 1-14, October.
    42. Rachel A. Carson & Zoe Hamel & Kelly Giarrocco & Rebecca Baylor & Leah Greden Mathews, 2016. "Buying in: the influence of interactions at farmers’ markets," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(4), pages 861-875, December.
    43. Leonardo Becchetti & Giovanni Trovato & David Andres Londono Bedoya, 2011. "Income, relational goods and happiness," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 273-290.
    44. Alessandro Corsi & Silvia Novelli & Giacomo Pettenati, 2018. "Producer and farm characteristics, type of product, location: Determinants of on‐farm and off‐farm direct sales by farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 631-649, June.
    45. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    46. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    47. Corsi, Alessandro & Borsotto, Patrizia & Borri, Ilaria & Strom, Steinar, 2009. "Diversification of the marketing chains among organic producers," 2009 Conference, August 16-22, 2009, Beijing, China 51422, International Association of Agricultural Economists.
    48. Curtis, Kynda R. & Gumirakiza, J. Dominique & Bosworth, Ryan C., 2014. "Consumer Preferences and Willingness to Pay for Multi-Labeled Produce at Farmers' Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(1), pages 1-7, March.
    49. Terry Marsden & Jo Banks & Gillian Bristow, 2002. "The Social Management of Rural Nature: Understanding Agrarian-Based Rural Development," Environment and Planning A, , vol. 34(5), pages 809-825, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Corsi, Alessandro & Novelli, Silvia, 2016. "The value of the participation in Solidarity Purchasing Groups (SPGs): an empirical analysis in Piedmont," 2016 Fifth AIEAA Congress, June 16-17, 2016, Bologna, Italy 242305, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Corsi, Alessandro & Novelli, Silvia, 2016. "Alternative Food Networks and short food chains: estimating the economic value of the participation in solidarity purchasing groups," 149th Seminar, October 27-28, 2016, Rennes, France 244776, European Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corsi, Alessandro & Novelli, Silvia, 2015. "The value of direct farmers-consumers relationships as determinants of consumers' purchase choices," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202749, European Association of Agricultural Economists.
    2. Printezis, Iryna & Grebitus, Carola, 2018. "Marketing Channels for Local Food," Ecological Economics, Elsevier, vol. 152(C), pages 161-171.
    3. Stefania Capecchi & Maria Iannario & Rosaria Simone, 2018. "Well-Being and Relational Goods: A Model-Based Approach to Detect Significant Relationships," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 729-750, January.
    4. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    5. Emilio Colombo & Valentina Rotondi & Luca Stanca, 2018. "Macroeconomic conditions and well-being: do social interactions matter?," Applied Economics, Taylor & Francis Journals, vol. 50(28), pages 3029-3038, June.
    6. Benedetto Gui, 2013. "Relational goods," Chapters, in: Luigino Bruni & Stefano Zamagni (ed.), Handbook on the Economics of Reciprocity and Social Enterprise, chapter 30, pages 295-305, Edward Elgar Publishing.
    7. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    8. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    9. Giorgio Tavano Blessi & Enzo Grossi & Pier Luigi Sacco & Giovanni Pieretti & Guido Ferilli, 2014. "Cultural Participation, Relational Goods and Individual Subjective Well-Being: Some Empirical Evidence," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 33-46, August.
    10. Marta Portela & Isabel Neira & Maria del Salinas-Jiménez, 2013. "Social Capital and Subjective Wellbeing in Europe: A New Approach on Social Capital," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 493-511, November.
    11. Sarracino, Francesco, 2013. "Determinants of subjective well-being in high and low income countries: Do happiness equations differ across countries?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 51-66.
    12. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    13. Carmelo Javier León, 1995. "El método dicotómico de valoración contingente: una aplicación a los espacios naturales en Gran Canaria," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 83-106, January.
    14. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    15. Scarpa, Riccardo & Chilton, Susan M. & Hutchinson, W. George & Buongiorno, Joseph, 2000. "Valuing the recreational benefits from the creation of nature reserves in Irish forests," Ecological Economics, Elsevier, vol. 33(2), pages 237-250, May.
    16. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    17. Gupta, Clare & Jablonski, Becca B.R., 2016. "Farm Impacts of Farm-to-Grocer Sales: The Case of Hawai’i," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-23, November.
    18. Gianna Lotito & Matteo Migheli & Guido Ortona, 2015. "An Experimental Inquiry into the Nature of Relational Goods, and Their Impact on Co-operation," Group Decision and Negotiation, Springer, vol. 24(4), pages 699-722, July.
    19. Pinuccia Calia & Elisabetta Strazzera, 2000. "Bias and efficiency of single versus double bound models for contingent valuation studies: a Monte Carlo analysis," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1329-1336.
    20. Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.

    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D1 - Microeconomics - - Household Behavior
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:201543. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piero Cavaleri or Marina Grazioli (email available below). General contact details of provider: https://edirc.repec.org/data/detorit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.