IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v8y2010i1n3.html
   My bibliography  Save this article

The Effect of Proposition 2 on the Demand for Eggs in California

Author

Listed:
  • Lusk Jayson L

    (Oklahoma State University)

Abstract

Californians recently passed Proposition 2, barring the use of cages in egg production in the state. Because most consumers are unknowledgeable of egg production practices, the appearance of Proposition 2 likely served as an information shock that potentially affected consumer demand. In this paper, we use scanner data to investigate the market effects of Proposition 2 by studying whether and how consumer demand for eggs changed in the months leading up to the vote in San Francisco and Oakland. Results indicate that demand for the types of eggs associated with higher animal welfare standards, cage free and organic, increased over time and in response to articles on the proposition whereas demand for other types of eggs fell. These results coupled with the finding that cage free and organic egg demand was virtually unchanged in a location unaffected by the vote, Dallas, suggests that Proposition 2 had a significant effect on consumer preferences for eggs - increasing demand for cage free and organic eggs by 180% and 20%, respectively.

Suggested Citation

  • Lusk Jayson L, 2010. "The Effect of Proposition 2 on the Demand for Eggs in California," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-20, April.
    • Handle: RePEc:bpj:bjafio:v:8:y:2010:i:1:n:3
    DOI: 10.2202/1542-0485.1296
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1542-0485.1296
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1542-0485.1296?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-17, December.
    2. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer willingness to pay for farm animal welfare: mobile abattoirs versus transportation to slaughter," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(3), pages 321-344, September.
    3. Jayson Lusk & Tomas Nilsson & Ken Foster, 2007. "Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Environmentally Certified Pork," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(4), pages 499-521, April.
    4. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    5. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
    6. Bennett, Richard M. & Blaney, Ralph J. P., 2003. "Estimating the benefits of farm animal welfare legislation using the contingent valuation method," Agricultural Economics, Blackwell, vol. 29(1), pages 85-98, July.
    7. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    8. Norwood, F. Bailey & Lusk, Jayson L., 2009. "The Farm Animal Welfare Debate," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 24(3), pages 1-7.
    9. You, Zhikang & Epperson, James E. & Huang, Chung L., 1996. "A Composite System Demand Analysis For Fresh Fruits And Vegetables In The United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), pages 1-12, October.
    10. Ming-Feng Hsieh & Paul D. Mitchell & Kyle W. Stiegert, 2009. "Potato demand in an increasingly organic marketplace," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 369-394.
    11. Tirtha Dhar & Jeremy D. Foltz, 2005. "Milk by Any Other Name … Consumer Benefits from Labeled Milk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 214-228.
    12. LaFrance, Jeffrey T., 1991. "When Is Expenditure "Exogenous" In Separable Demand Models?," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(01), pages 1-14, July.
    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. Lambert, Remy, 2012. "A Primer on the Economics of Supply Management and Food Supply Chains," Working Papers 125246, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    2. Hopkins, Kelsey A. & McKendree, Melissa G. S. & Rice, Emma D., 2020. "Understanding the U.S. Publics’ Voting on Animal Welfare and Genetically Modified Organism Labeling Ballot Initiatives," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304519, Agricultural and Applied Economics Association.
    3. Francisco Alex J. & Bruce Amanda S. & Crespi John M. & Lusk Jayson L. & McFadden Brandon & Bruce Jared M. & Aupperle Robin L. & Lim Seung-Lark, 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.
    4. Bougherara Douadia & Ropars-Collet Carole & Saint-Gilles Jude, 2022. "Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 20(1), pages 39-59, May.
    5. 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.
    6. Cao, Ying (Jessica) & Cranfield, John & Chen, Chen & Widowski, Tina, 2021. "Heterogeneous informational and attitudinal impacts on consumer preferences for eggs from welfare enhanced cage systems," Food Policy, Elsevier, vol. 99(C).
    7. Chang, Jae Bong & Lusk, Jayson L. & Norwood, F. Bailey, 2010. "The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(3), pages 1-18, December.
    8. Rebecca L. C. Taylor & Scott Kaplan & Sofia B. Villas‐Boas & Kevin Jung, 2019. "Soda Wars: The Effect Of A Soda Tax Election On University Beverage Sales," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1480-1496, July.
    9. Roheim, Cathy A. & Zhang, Dengjun, 2018. "Sustainability certification and product substitutability: Evidence from the seafood market," Food Policy, Elsevier, vol. 79(C), pages 92-100.
    10. Sunjin Ahn & Jayson L. Lusk, 2021. "Non‐Pecuniary Effects of Sugar‐Sweetened Beverage Policies," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 53-69, January.
    11. Carlos Arnade & Fred Kuchler & Linda Calvin, 2013. "Consumers’ Response When Regulators Are Uncertain About the Source of Foodborne Illness," Journal of Consumer Policy, Springer, vol. 36(1), pages 17-36, March.
    12. Malone, Trey & Lusk, Jayson L., 2016. "Putting the Chicken Before the Egg Price: An Ex Post Analysis of California's Battery Cage Ban," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-15, September.
    13. Ufer, Danielle J., 2025. "Animal Welfare and Treatment Label Claims in U.S. Table Eggs: Trends in Retail Premiums and Policy Impacts, 2008–18," Economic Research Report 349285, United States Department of Agriculture, Economic Research Service.
    14. Kent D. Messer & Marco Costanigro & Harry M. Kaiser, 2017. "Labeling Food Processes: The Good, the Bad and the Ugly," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(3), pages 407-427.
    15. Vasiliki Fourmouzi & Margarita Genius & Peter Midmore, 2012. "The Demand for Organic and Conventional Produce in London, UK: A System Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 677-693, September.
    16. Paul, Andrew S. & Lusk, Jayson L. & Norwood, F. Bailey & Tonsor, Glynn T., 2019. "An experiment on the vote-buy gap with application to cage-free eggs," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 102-109.
    17. Colin A. Carter & K. Aleks Schaefer & Daniel Scheitrum, 2021. "Piecemeal Farm Regulation and the U.S. Commerce Clause," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 1141-1163, May.
    18. McFadden, Brandon R. & Lusk, Jayson L. & Crespi, John M. & Cherry, J. Bradley C. & Martin, Laura E. & Bruce, Amanda S., 2013. "Consumer Response to Egg Production Systems and the Effect of Proposition 2 Advertising: A Preliminary Neuroeconomic Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150437, Agricultural and Applied Economics Association.
    19. Carlos Arnade & Fred Kuchler & Linda Calvin, 2016. "The changing role of consumers and suppliers in a food safety event: the 2006 foodborne illness outbreak linked to spinach," Applied Economics, Taylor & Francis Journals, vol. 48(25), pages 2354-2366, May.
    20. Heng, Yan & Peterson, Hikaru, 2014. "Estimating Demand for Differentiated Eggs Using Scanner Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170457, Agricultural and Applied Economics Association.

    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. Hayley H. Chouinard & David E. Davis & Jeffrey T. LaFrance & Jeffrey M. Perloff, 2010. "Milk Marketing Order Winners and Losers," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 59-76.
    2. Levan Elbakidze & Rodolfo M. Nayga Jr. & Hao Li & Chris McIntosh, 2014. "Value elicitation for multiple quantities of a quasi-public good using open ended choice experiments and uniform price auctions," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 253-265, March.
    3. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    4. Cuma Akbay, 2007. "Urban Households’ Cooking Oil and Fat Consumption Patterns in Turkey: Quality Vs. Quantity," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(6), pages 851-867, December.
    5. Bilgic, Abdulbaki & Yen, Steven T., 2013. "Household food demand in Turkey: A two-step demand system approach," Food Policy, Elsevier, vol. 43(C), pages 267-277.
    6. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908.
    7. Jeon, Younghyeon & Hoang, Hoa K. & Thompson, Wyatt & Abler, David & Miller, J. Isaac, 2022. "Revealing the fundamental parameters of a food demand system using estimated elasticities," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322182, Agricultural and Applied Economics Association.
    8. De Agostini, Paola, 2014. "The effect of food prices and household income on the British diet," ISER Working Paper Series 2014-10, Institute for Social and Economic Research.
    9. Tonsor, Glynn T. & Wolf, Christopher & Olynk, Nicole, 2009. "Consumer voting and demand behavior regarding swine gestation crates," Food Policy, Elsevier, vol. 34(6), pages 492-498, December.
    10. Nzaku, Kilungu & Houston, Jack E., 2009. "Dynamic Estimation of U.S. Demand for Fresh Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 52209, Agricultural and Applied Economics Association.
    11. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
    12. Otieno, David & Ogutu, Sylvester, 2015. "Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212602, International Association of Agricultural Economists.
    13. Chouinard, Hayley H & Davis, David E. & LaFrance, Jeffrey T. & Perloff, Jeffrey M, 2005. "The Effects of a Fat Tax on Dairy Products," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt60t1f3tn, Department of Agricultural & Resource Economics, UC Berkeley.
    14. Jayson Lusk, 2011. "The market for animal welfare," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(4), pages 561-575, December.
    15. Nikodinoska, Dragana & Schröder, Carsten, 2015. "On the emissions-inequality trade-off in energy taxation: Evidence on the German car fuel tax," Discussion Papers 2015/6, Free University Berlin, School of Business & Economics.
    16. Hovhannisyan, Vardges, 2016. "New Evidence On The Structure Of Food Demand In China: An Easi Demand Model Estimated Via Panel Data Techniques," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236889, Agricultural and Applied Economics Association.
    17. Shapiro, Jesse M., 2005. "Is there a daily discount rate? Evidence from the food stamp nutrition cycle," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 303-325, February.
    18. Allais, Olivier & Bertail, Patrice & Nichele, Veronique, 2008. "The Effects of a "Fat Tax" on the Nutrient Intake of French Households," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43967, European Association of Agricultural Economists.
    19. Rickard, Bradley J. & Gonsalves, Jana, 2006. "Examining Potential Changes in Nutrition: Recommendations and Implications for Specialty Crops in California," Research Project Reports 121617, California Polytechnic State University, San Luis Obispo, California Institute for the Study of Specialty Crops.
    20. MacDonald, James M. & Cessna, Jerry & Mosheim, Roberto, 2016. "Changing Structure, Financial Risks, and Government Policy for the U.S. Dairy Industry," Economic Research Report 262200, United States Department of Agriculture, Economic Research Service.

    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:bpj:bjafio:v:8:y:2010:i:1:n:3. 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: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    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.