Estimating the Optimal Premium Rates for Credential Food Attributes: A Case Study in the Northeast United States
Using data from the 2010 Taste of Place survey conducted in Vermont and three metropolitan areas in the northeast United States, this study examines consumer willingness to pay (WTP), estimates price elasticity, and calculates the optimal premium rates for selected credence food attributes. The empirical results indicate that respondentsâ€™ WTP varies significantly across attributes and is closely associated with certain demographic factors. The estimated optimal premium rates and estimation procedures presented in this paper can help producers and retailers identify the optimal premium rates for each attribute in association with geographical or socioeconomic segments of consumers.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kolodinsky, Jane, 2008. "Affect or information? Labeling policy and consumer valuation of rBST free and organic characteristics of milk," Food Policy, Elsevier, vol. 33(6), pages 616-623, December.
- Julie A. Caswell & Eliza M. Mojduszka, 1996.
"Using Informational Labeling to Influence the Market for Quality in Food Products,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
- Caswell, Julie A. & Mojduszka, Eliza M., 1996. "Using Informational Labeling To Influence The Market For Quality In Food Products," Working Papers 25989, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Maria L. Loureiro & Jill J. McCluskey & Ron C. Mittelhammer, 2003. "Are Stated Preferences Good Predictors of Market Behavior?," Land Economics, University of Wisconsin Press, vol. 79(1), pages 44-45.
- Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
- Zhifeng Gao & Ted C. Schroeder, 2007. "Effects of Label Information on Consumer Willingness-to-Pay for Food Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 795-809.
- Carlos E. Carpio & Olga Isengildina-Massa, 2009.
"Consumer willingness to pay for locally grown products: the case of South Carolina,"
John Wiley & Sons, Ltd., vol. 25(3), pages 412-426.
- Carpio, Carlos E. & Isengildina-Massa, Olga, 2008. "Consumer Willingness to Pay for Locally Grown Products: The Case of South Carolina," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6815, Southern Agricultural Economics Association.
When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:145329. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.