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Information and consequentiality: Evidence from willingness to pay for eco-labelling products based on Becker-Degroot-Marschak mechanism

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  • Hou, Lingling
  • Liu, Na
  • Liu, Pengfei
  • Lv, Xinxin
  • Li, Saiwei

Abstract

This study investigates the impact of informational interventions on consumers’ willingness to pay (WTP) for eco-labeled grassland-fed lamb under real-payment and hypothetical contexts. Using the Becker–DeGroot–Marschak (BDM) auction method, we conducted a field experiment with consumers in Beijing, China. On average, consumers were willing to pay a 26% premium for grassland-fed lamb compared with fence-fed lamb, highlighting the perceived value of grassland-based products. We find no significant difference in WTP between real and hypothetical contexts. In the pooled sample, the text treatment emphasizing on donation increased WTP by 1.2 yuan/kg, while the video treatment highlighting product attributes raised WTP by 2 yuan/kg. Treatment effects, however, varied across contexts: the text treatment generated a significant gap between real and hypothetical groups, whereas the video treatment did not. These results demonstrate how eco-labels and tailored information strategies can enhance consumer valuation of ecological products and provide policy-relevant insights for promoting ecosystem services through markets.

Suggested Citation

  • Hou, Lingling & Liu, Na & Liu, Pengfei & Lv, Xinxin & Li, Saiwei, 2026. "Information and consequentiality: Evidence from willingness to pay for eco-labelling products based on Becker-Degroot-Marschak mechanism," Food Policy, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:jfpoli:v:138:y:2026:i:c:s0306919225002064
    DOI: 10.1016/j.foodpol.2025.103001
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