IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/8618.html
   My bibliography  Save this article

Estimating Willingness to Pay Using a Polychotomous Choice Function: An Application to Pork Products with Environmental Attributes

Author

Listed:
  • Hurley, Sean P.
  • Miller, Douglas J.
  • Kliebenstein, James B.

Abstract

Bid data from a Vickrey auction for pork chops with embedded environmental attributes were analyzed. It was found that approximately 62% of the participants had a positive WTP for the most "environmentally friendly" package of pork. Thirty percent of the participants had no WTP, and 8% had a negative WTP. A polychotomous choice model was used to accommodate data having an anchoring point within the distribution of the data. Standard variables found in the WTP literature coupled with this model were used to predict participants who were premium payers and non-premium payers using an estimated ordered probit equation.

Suggested Citation

  • Hurley, Sean P. & Miller, Douglas J. & Kliebenstein, James B., 2006. "Estimating Willingness to Pay Using a Polychotomous Choice Function: An Application to Pork Products with Environmental Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-17, August.
    • Handle: RePEc:ags:jlaare:8618
    DOI: 10.22004/ag.econ.8618
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/8618/files/31020301.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.8618?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Matthew C. Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2004. "Estimating the Public Value of Conflicting Information: The Case of Genetically Modified Foods," Land Economics, University of Wisconsin Press, vol. 80(1), pages 125-135.
    2. Abeles-Allison, Mark & Connor, Larry J., 1990. "An Analysis of Local Benefits and Costs of Michigan Hog Operations Experiencing Environmental Conflicts," Agricultural Economic Report Series 201396, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Rousu, M. & Huffman, Wallace & Shogren, Jason F. & Tegene, Abebayehu, 2004. "Estimating the Public Value of Information: Genetically Modified Foods," Staff General Research Papers Archive 10426, Iowa State University, Department of Economics.
    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. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    2. White, Robin R. & Brady, Michael, 2014. "Can consumers’ willingness to pay incentivize adoption of environmental impact reducing technologies in meat animal production?," Food Policy, Elsevier, vol. 49(P1), pages 41-49.
    3. Kwideok Han & Jeffrey Vitale & Yong-Geon Lee & Inbae Ji, 2022. "Measuring the Economic Value of the Negative Externality of Livestock Malodor in South Korea," IJERPH, MDPI, vol. 19(15), pages 1-13, August.
    4. White, Robin R. & Brady, Michael & Capper, Judith L. & Johnson, Kristen A., 2014. "Optimizing diet and pasture management to improve sustainability of U.S. beef production," Agricultural Systems, Elsevier, vol. 130(C), pages 1-12.

    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. H. Eggert & M. Greaker, 2011. "Trade, GMOs and Environmental Risk: Are Current Policies Likely to Improve Welfare?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 587-608, April.
    2. Disdier, Anne-Célia & Marette, Stéphan, 2012. "How do consumers in developed countries value the environment and workers’ social rights in developing countries?," Food Policy, Elsevier, vol. 37(1), pages 1-11.
    3. Kaneko, Naoya & Chern, Wen S., 2005. "Willingness to Pay for Genetically Modified Oil, Cornflakes, and Salmon: Evidence from a U.S. Telephone Survey," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-19, December.
    4. Chen, Xianwen & Alfnes, Frode & Rickertsen, Kyrre, 2014. "Consumer Preferences, Ecolabels, and the Effects of Negative Environmental Information," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168094, Agricultural and Applied Economics Association.
    5. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.
    6. Lee, Ji Yong & Han, Doo Bong & Nayga Jr, Rodolfo M. & Lim, Song-Soo, 2011. "Valuing traceability of imported beef in Korea: an experimental auction approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-14, September.
    7. 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.
    8. S. Marette & L. Nabec & F. Durieux, 2019. "Improving Nutritional Quality of Consumers’ Food Purchases With Traffic-Lights Labels: An Experimental Analysis," Journal of Consumer Policy, Springer, vol. 42(3), pages 377-395, September.
    9. Huffman, Wallace E. & Rousu, Matthew & Shogren, Jason F. & Tegene, Abebayehu, 2007. "The effects of prior beliefs and learning on consumers' acceptance of genetically modified foods," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 193-206, May.
    10. Lusk, Jayson L. & Rozan, Anne, 2008. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(2), pages 1-20.
    11. Karli, Bahri & Bilgic, Abdulbaki & Miran, Bulent, 2008. "Consumers' Perceptions about Genetically Modified Foods and Their Stated Willingness-to-Pay for Genetically Modified Food Labeling: Evidences from Turkey," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6754, Southern Agricultural Economics Association.
    12. Gautam, Ruskin & Gustafson, Christopher R. & Brooks, Kathleen R., 2017. "Label Position and it Impacts on WTP for Products Containing GMO," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258105, Agricultural and Applied Economics Association.
    13. 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.
    14. Rousu, Matthew C. & Nonnemaker, James & Farrelly, Matthew, 2009. "The Value of Countermarketing Information to Smokers: Evidence from Field Auctions," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49219, Agricultural and Applied Economics Association.
    15. Terawaki, Taku, 2005. "Effects of Information on Consumer Risk Perception and Willingness to Pay for Non-Genetically Modified Corn Oil," 2005 Annual meeting, July 24-27, Providence, RI 19555, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Rousu, Matthew C. & Beach, Robert H. & Corrigan, Jay R., 2005. "Demand Curve Shifts in Multi-Unit Auctions: Evidence from a Laboratory Experiment," 2005 Annual meeting, July 24-27, Providence, RI 19513, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Dickinson, David L. & Von Bailey, Dee, 2005. "Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(3), pages 537-548, December.
    18. Marette Stéphan & Roosen Jutta & Blanchemanche Sandrine, 2011. "The Combination of Lab and Field Experiments for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(3), pages 1-36, August.
    19. Stéphan Marette & Jayson L. Lusk & Jutta Roosen, 2010. "Welfare Impact of Information with Experiments: The Crucial Role of the Price Elasticity of Demand," Economics Bulletin, AccessEcon, vol. 30(2), pages 1585-1593.
    20. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer benefits of labels and bans on genetically modified food - An empirical analysis using Choice Experiments," 2004 Annual meeting, August 1-4, Denver, CO 20370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    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:ags:jlaare:8618. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.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.