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Comparing Parts with the Whole: Willingness to Pay for Pesticide-Free, Non-GM, and Organic Potatoes and Sweet Corn

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  • Bernard, John C.
  • Bernard, Daria J.

Abstract

Auction experiments were used to investigate demand relationships and willingness to pay (WTP) for four versions of potatoes and sweet corn—conventional, organic, and two parts of organic: no pesticides and non-genetically modified (non-GM). Elasticities showed strong and asymmetric substitute relationships between organic and its parts. Combined premiums of the parts were not significantly different than the whole organic premium, suggesting WTP for the attributes are not additive. A two-stage heteroskedastic tobit model found significant WTP for each part dependent on demographics and beliefs about conventional versions. Results suggest segments for parts of organic could be established alongside the whole.

Suggested Citation

  • Bernard, John C. & Bernard, Daria J., 2010. "Comparing Parts with the Whole: Willingness to Pay for Pesticide-Free, Non-GM, and Organic Potatoes and Sweet Corn," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), December.
  • Handle: RePEc:ags:jlaare:97858
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    File URL: http://purl.umn.edu/97858
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    References listed on IDEAS

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    1. John Bernard, 2005. "Evidence of affiliation of values in a repeated trial auction experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 12(11), pages 687-691.
    2. Nalley, Lawton Lanier & Hudson, Darren & Parkhurst, Gregory M., 2006. "Consistency of Consumer Valuation Under Different Information Sets: An Experimental Auction with Sweet Potatoes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(03), November.
    3. Huang, Chung L, 1996. "Consumer Preferences and Attitudes towards Organically Grown Produce," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 331-342.
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    Cited by:

    1. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Willingness-to-pay for natural, organic, and conventional foods: The effects of information and meaningful labels," Food Policy, Elsevier, vol. 68(C), pages 214-232.
    2. Skuza, Nathan & McCracken, Vicki & Ellis, Joan, 3. "Compensation Fees And Willingness To Pay: A Field Experiment On Organic Apples," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(3).
    3. Shi, Lijia & House, Lisa & Gao, Zhifeng, 2012. "Consumers’ Willingness-to-pay for Organic and Local Blueberries: A Multi-store BDM Auction Controlling for Purchase Intentions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124998, Agricultural and Applied Economics Association.
    4. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.
    5. Eric Giraud-Héraud & Maria Aguiar Fontes & Alexandra Seabra Pinto, 2014. "Crise sanitaires de l'alimentation et analyses comportementales," Working Papers hal-00949126, HAL.
    6. Lijia Shi & Lisa A. House & Zhifeng Gao, 2013. "Impact of Purchase Intentions on Full and Partial Bids in BDM Auctions: Willingness-to-pay for Organic and Local Blueberries," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 707-718, September.

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