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Are Consumers as Constrained as Hens are Confined? Brain Activations and Behavioral Choices after Informational Influence

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Listed:
  • Francisco Alex J.
  • Bruce Jared M.
  • Lim Seung-Lark

    (University of Missouri-Kansas City, Kansas City, MO, USA)

  • Bruce Amanda S.
  • Crespi John M.

    (Iowa State University, Ames, IA, USA)

  • Lusk Jayson L.

    (Oklahoma State University, Stillwater, OK, USA)

  • McFadden Brandon

    (University of Florida, Gainesville, FL, USA)

  • Aupperle Robin L.

Abstract

In 2008, California passed Proposition 2, specifying confinement space for certain farm animals. Proposition 2 went into full effect January 2015 and has significant implications for egg production in California and possibly even interstate commerce. We examined the influence of promotional videos aired during the campaign on consumers’ willingness-to-pay for eggs produced in a more open production system (i.e., cage-free, free range) and corresponding neurofunctional activations during decisions. Forty-six participants (24 females), aged 18–55 years (M=29.65), were enrolled and performed a food decision-making task during fMRI scanning. In each decision, two options of identical one dozen cartons of eggs were presented simultaneously. Below each option were two attributes, describing price and production method. Cage free and free-range eggs were more expensive, at varying degrees. Participants were randomized to one of three 30-second video groups: pro-Proposition 2, anti-Proposition 2, and a Neutral flowing stream. Based on a whole brain analysis, participants in the pro-Proposition 2 video group (N=16) demonstrated significantly greater activations post-video compared to pre-video in left insular cortex and right occipital cortex. This change in insula activity may be indicative of increased social risk involved with the purchase of closed production method eggs, driving participants to increase their percentage of decisions to purchase the higher priced, open-method eggs. It is possible that the insula activation indicates that consumers are constrained to choosing the eggs produced under open-cage production methods, after viewing advertisements advocating for Proposition 2.

Suggested Citation

  • Francisco Alex J. & Bruce Jared M. & Lim Seung-Lark & Bruce Amanda S. & Crespi John M. & Lusk Jayson L. & McFadden Brandon & Aupperle Robin L., 2015. "Are Consumers as Constrained as Hens are Confined? Brain Activations and Behavioral Choices after Informational Influence," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 13(1), pages 113-119, January.
    • Handle: RePEc:bpj:bjafio:v:13:y:2015:i:1:p:113-119:n:7
    DOI: 10.1515/jafio-2015-0022
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    2. Schukat, S. & Heise, H., 2018. "Neuroeconomics In Der Agrarökonomischen Forschung: Eine Status Quo Analyse," 58th Annual Conference, Kiel, Germany, September 12-14, 2018 275843, German Association of Agricultural Economists (GEWISOLA).
    3. Wensing, Joana & Caputo, Vincenzina & Carraresi, Laura & Bröring, Stefanie, 2020. "The effects of green nudges on consumer valuation of bio-based plastic packaging," Ecological Economics, Elsevier, vol. 178(C).
    4. Cao, Ying & Chen, Chen & Cranfield, John & Widowski, Tina, 2017. "Market Responses to Information Conveying Mixed Messages – Prediction of Informational Impacts on Consumer Willingness to Pay for Eggs from Welfare Enhanced Cage Systems using Discrete Choice Experime," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258545, Agricultural and Applied Economics Association.
    5. Houman Hashemzadeh & Alireza Karbasi & Hosein Mohammadi & Ali Firoozzare & Flavio Boccia, 2022. "Investigating the Effect of Nudges on Consumers’ Willingness to Pay for Genetically Modified Corn Oil," Sustainability, MDPI, vol. 14(19), pages 1-18, October.

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