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Willingness to Pay for Reduced Risk of Foodborne Illness: A Nonhypothetical Field Experiment

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  • Rodolfo M. Nayga
  • Richard Woodward
  • Wipon Aiew

Abstract

This paper focuses on estimating willingness to pay for reducing risk of getting foodborne illness using a nonhypothetical field experiment utilizing real food products (i.e., ground beef ), real cash, and actual exchange in a market setting. Respondents were given information about the nature of food irradiation. Single‐bounded and one and one‐half bounded models are developed using dichotomous choice experiments. Our results indicate that individuals are willing to pay for a reduction in the risk of foodborne illness once informed about the nature of food irradiation. Our respondents are willing to pay a premium of about $0.77 for a pound of irradiated ground beef, which is higher than the cost to irradiate the product. Le présent article porte sur l'estimation de la volonté de payer des consommateurs pour diminuer le risque de contracter une maladie d'origine alimentaire. L'étude a été réalisée en effectuant une expérience sur le terrain à l'aide de vrais produits alimentaires (à savoir du bœuf haché), d'argent réel et d'échange réel en situation de marché. Les répondants avaient reçu de l'information sur l'irradiation des aliments. Nous avons mis au point des modèles à une limite et à une limite et demie utilisant la méthode des choix dichotomiques. Nos résultats ont montré que les consommateurs étaient prêts à payer pour diminuer le risque de contracter une maladie d'origine alimentaire, une fois informés sur l'irradiation des aliments. Nos répondants étaient prêts à payer une prime d'environ 0,77$ la livre pour obtenir du bœuf haché irradié, soit une somme supplémentaire supérieure au coût de l'irradiation du produit.

Suggested Citation

  • Rodolfo M. Nayga & Richard Woodward & Wipon Aiew, 2006. "Willingness to Pay for Reduced Risk of Foodborne Illness: A Nonhypothetical Field Experiment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 461-475, December.
    • Handle: RePEc:bla:canjag:v:54:y:2006:i:4:p:461-475
    DOI: 10.1111/j.1744-7976.2006.00061.x
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    Cited by:

    1. Teisl, Mario F. & Roe, Brian E., 2010. "Consumer willingness-to-pay to reduce the probability of retail foodborne pathogen contamination," Food Policy, Elsevier, vol. 35(6), pages 521-530, December.
    2. Ji Yong Lee & Doo Bong Han & Rodolfo M. Nayga Jr & Song Soo Lim, 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 360-373, July.
    3. Kofi Britwum & Amalia Yiannaka, 2019. "Labeling food safety attributes: to inform or not to inform?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-21, December.
    4. Fortin, Corey & Goodwin, Harold L., Jr., 2008. "Valuation of Temp-Time's Fresh-Check® Indicator on Perishable Food Products in Belgium," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6766, Southern Agricultural Economics Association.
    5. Alphonce, Roselyne & Alfnes, Frode & Sharma, Amit, 2014. "Consumer vs. citizen willingness to pay for restaurant food safety," Food Policy, Elsevier, vol. 49(P1), pages 160-166.
    6. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    7. Waldman, Kurt B. & Kerr, John M., 2015. "Is Food and Drug Administration policy governing artisan cheese consistent with consumers’ preferences?," Food Policy, Elsevier, vol. 55(C), pages 71-80.
    8. Hee-Hoon Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2019. "Residential Consumers’ Willingness to Pay Price Premium for Renewable Heat in South Korea," Sustainability, MDPI, vol. 11(5), pages 1-14, February.
    9. Maria Aguiar Fontes & Eric Giraud-Héraud & Alexandra Seabra Pinto, 2013. "Consumers' behaviour towards food safety: A litterature review," Working Papers hal-00912476, HAL.
    10. Morkbak, Morten Raun & Christensen, Tove & Gyrd-Hansen, Dorte E., 2008. "Consumers want safer meat - but not at all costs," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44319, European Association of Agricultural Economists.
    11. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.
    12. Ju-Hee Kim & Kyung-Kyu Lim & Seung-Hoon Yoo, 2019. "Evaluating Residential Consumers’ Willingness to Pay to Avoid Power Outages in South Korea," Sustainability, MDPI, vol. 11(5), pages 1-12, February.
    13. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    14. Knapp, T. & Kovacs, K. & Huang, Q. & Henry, C. & Nayga, R. & Popp, J. & Dixon, B., 2018. "Willingness to pay for irrigation water when groundwater is scarce," Agricultural Water Management, Elsevier, vol. 195(C), pages 133-141.
    15. Britwum, Kofi & Yiannaka, Amalia, 2016. "Consumer Willingness to Pay for Food Safety Interventions: The Role of Message Framing and Involvement," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235884, Agricultural and Applied Economics Association.
    16. Varela, Elsa & Mahieu, Pierre-Alexandre & Giergiczny, Marek & Riera, Pere & Soliño, Mario, 2014. "Testing the single opt-out reminder in choice experiments: An application to fuel break management in Spain," Journal of Forest Economics, Elsevier, vol. 20(3), pages 212-222.
    17. Lilavanichakul, Apichaya & Boecker, Andreas, 2013. "Consumer Acceptance of a New Traceability Technology: A Discrete Choice Application to Ontario Ginseng," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(4), pages 1-26, November.
    18. Jang, Jinyong & Lee, Jongsu & Yoo, Seung-Hoon, 2014. "The public׳s willingness to pay for securing a reliable natural gas supply in Korea," Energy Policy, Elsevier, vol. 69(C), pages 3-13.
    19. Bruner, David M. & Huth, William L. & McEvoy, David M. & Morgan, O. Ashton, 2014. "Consumer Valuation of Food Safety: The Case of Postharvest Processed Oysters," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), pages 1-19, August.
    20. Naphtal Habiyaremye & Nadhem Mtimet & Emily A. Ouma & Gideon A. Obare, 2023. "Consumers' willingness to pay for safe and quality milk: Evidence from experimental auctions in Rwanda," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1049-1074, October.
    21. Cash, Sean B. & Lacanilao, Ryan D. & Adamowicz, Wiktor L. & Raine, Kim, 2008. "An Experimental Investigation of the Impact of Fat Taxes: Prices Effects, Food Stigma, and Information Effects on Economics Instruments to Improve Dietary Health," Consumer and Market Demand Network Papers 45499, University of Alberta, Department of Resource Economics and Environmental Sociology.
    22. Jin, Shaosheng & Zhang, Yan & Xu, Yining, 2015. "Amount of Information and consumers' willingness to pay for food traceability in China," 2015 Conference, August 9-14, 2015, Milan, Italy 211811, International Association of Agricultural Economists.
    23. David M. Bruner & William L. Huth & David M. McEvoy & O. Ashton Morgan, 2011. "Accounting for Taste: Consumer Valuations for Food-Safety Technologies," Working Papers 11-09, Department of Economics, Appalachian State University.
    24. Britwum, Kofi & Yiannaka, Amalia, 2019. "Consumer willingness to pay for food safety interventions: The role of message framing and issue involvement," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    25. Hildegard Garming & Hermann Waibel, 2009. "Pesticides and farmer health in Nicaragua: a willingness-to-pay approach to evaluation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(2), pages 125-133, May.

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