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Stated and Revealed Preferences for Organic and Cloned Milk: Combining Choice Experiment and Scanner Data

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  • Kathleen Brooks
  • Jayson L. Lusk

Abstract

The U.S. Food and Drug Administration's recent announcement that milk from cloned cows is as safe to drink as that from conventionally bred cows prompted interest among farmers, food retailers, and regulators in the market impacts of the introduction of milk from clones. Because milk from cloned animals is not currently labeled in the market, we utilized a stated preference experiment to determine consumer preferences for the attribute, but also sought to determine whether the survey-based choices were consistent with people's revealed preferences given by scanner data. Our analysis indicates that a pooled model combining stated and revealed preference data exhibits overall better out-of-sample prediction performance than either data set used alone. Results from the pooled model indicate that consumers are willing to pay large premiums to avoid milk from cloned cows--an amount that is over three times that for organic or rBST-free milk. The results are used to calculate the value of a mandatory labeling program. Copyright 2010, Oxford University Press.

Suggested Citation

  • Kathleen Brooks & Jayson L. Lusk, 2010. "Stated and Revealed Preferences for Organic and Cloned Milk: Combining Choice Experiment and Scanner Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1229-1241.
  • Handle: RePEc:oup:ajagec:v:92:y:2010:i:4:p:1229-1241
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    File URL: http://hdl.handle.net/10.1093/ajae/aaq054
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    2. Wolf, Christopher A. & Tonsor, Glynn T. & Olynk, Nicole J., 2011. "Understanding U.S. Consumer Demand for Milk Production Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-17.
    3. Nadine Würriehausen & Rico Ihle & Sebastian Lakner, 2015. "Price relationships between qualitatively differentiated agricultural products: organic and conventional wheat in Germany," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 195-209, March.
    4. Acquah, Sarah & Petrolia, Daniel, 2014. "Effect of branding Gulf oysters on consumers willingness to pay," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162449, Southern Agricultural Economics Association.
    5. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    6. Jing Xie & Zhifeng Gao & Marilyn Swisher & Xin Zhao, 2016. "Consumers’ preferences for fresh broccolis: interactive effects between country of origin and organic labels," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 181-191, March.
    7. Su, Lianfan & Adam, Brian D. & Lusk, Jayson L. & Arthur, Frank, 2011. "A Comparison of Auction and Choice Experiment: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103975, Agricultural and Applied Economics Association.
    8. Jo, Jisung & Lusk, Jayson L. & Muller, Laurent & Ruffieux, Bernard, 2016. "Value of parsimonious nutritional information in a framed field experiment," Food Policy, Elsevier, vol. 63(C), pages 124-133.
    9. Schuster, Monica & Vranken, Liesbet & Maertens, Miet, 2017. "You Can(’t) Always Get the Job You Want: Stated versus Revealed Employment Preferences in the Peruvian Agro-industry," Working Papers 254076, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Tajima, Kayo & Yamamoto, Masashi & Ichinose, Daisuke, 2016. "How do agricultural markets respond to radiation risk? Evidence from the 2011 disaster in Japan," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 20-30.
    11. Li, Xianghong & Peterson, Hikaru Hanawa & Xia, Tian, 2012. "U.S. Consumer Demand for Organic Fluid Milk by Fat Content," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 1), pages 1-9, March.
    12. Christoph, Inken B. & Buergelt, Doreen & Salamon, Petra & Weible, Daniela & Zander, Katrin, 2012. "A Holistic Approach to Consumer Research on Expectations Regarding Animal Husbandry," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144963, International European Forum on System Dynamics and Innovation in Food Networks.
    13. Michael P. Keane & Nada Wasi, 2013. "The Structure of Consumer Taste Heterogeneity in Revealed vs. Stated Preference Data," Economics Papers 2013-W10, Economics Group, Nuffield College, University of Oxford.
    14. Yue, Chengyan & Hugie, Kari & Watkins, Eric, 2012. "Are consumers willing to pay more for low-input turfgrasses on residential lawns? Evidence from choice experiments," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 4), pages 1-12, November.
    15. Adelina Gschwandtner, 2014. "The Organic Food Premium: A Canterbury Tale," Studies in Economics 1411, School of Economics, University of Kent.
    16. repec:bla:jconsa:v:47:y:2013:i:1:p:98-127 is not listed on IDEAS
    17. repec:ags:jlaare:119178 is not listed on IDEAS
    18. Dan Rigby & Michael Burton & Jo Pluske, 2016. "Preference Stability and Choice Consistency in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 441-461, October.
    19. Chen, Kee-Kuo & Ho, Hui-Ping & Chang, Ching-Ter, 2015. "Estimating attributes importance for container shipping industry by closing the listening gap with maximum convergent validity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 145-163.

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