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Anchoring, Information, and Fragility of Choice Experiments: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management

Author

Listed:
  • Su, Lianfan
  • Adam, Brian D.
  • Lusk, Jayson L.
  • Arthur, Frank

Abstract

This study uses an experimental auction and a discrete choice experiment to determine consumers’ willingness to pay (WTP) for rice with improved insect control and for rice stored using Integrated Pest Management and investigates potential reasons—anchoring and information—why some studies have found inconsistencies between the two methods. Results indicate that WTP estimates from the choice experiment are lower than consumers’ average auction bids. Anchoring in the choice experiment appears to be an explanation for the discrepancy. Providing consumers with additional information about the products improved choice experiment results, producing consistent preference ordering and increasing WTP estimates.

Suggested Citation

  • Su, Lianfan & Adam, Brian D. & Lusk, Jayson L. & Arthur, Frank, 2017. "Anchoring, Information, and Fragility of Choice Experiments: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    • Handle: RePEc:ags:jlaare:258001
    DOI: 10.22004/ag.econ.258001
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    References listed on IDEAS

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    Cited by:

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    4. Ozge Dinc‐Cavlak & Ozlem Ozdemir, 2021. "Comparing the willingness to pay through three elicitation mechanisms: An experimental evidence for organic egg product," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 782-803, October.
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    6. Ximing Chen & Jie Shang & Muhammad Zada & Shagufta Zada & Xueqiang Ji & Heesup Han & Antonio Ariza-Montes & Jesús Ramírez-Sobrino, 2021. "Health Is Wealth: Study on Consumer Preferences and the Willingness to Pay for Ecological Agricultural Product Traceability Technology: Evidence from Jiangxi Province China," IJERPH, MDPI, vol. 18(22), pages 1-13, November.
    7. Glenk, Klaus & Meyerhoff, Jürgen & Akaichi, Faical & Martin-Ortega, Julia, 2019. "Revisiting cost vector effects in discrete choice experiments," Resource and Energy Economics, Elsevier, vol. 57(C), pages 135-155.

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