IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v38y2011i1p1-29.html
   My bibliography  Save this article

Preferences for fairness and equity in the food system

Author

Listed:
  • Brian C. Briggeman
  • Jayson L. Lusk

Abstract

Consumers have shown an increasing interest in not only how their food is produced, but also who benefits from their food purchase. In some cases, such as organics, food is marketed as being produced in an 'equitable' food system. But are consumers willing to pay for a fair food system? Using a model of inequality aversion and a set of real-money experiments, we find that about 15 per cent of consumers' willingness-to-pay a premium for organic foods is attributable to altruism and inequality aversion. The fairness premium is significantly influenced by who receives this premium, how much the consumer earns, and how the experiment is framed. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oup.com, Oxford University Press.

Suggested Citation

  • Brian C. Briggeman & Jayson L. Lusk, 2011. "Preferences for fairness and equity in the food system," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 1-29, March.
  • Handle: RePEc:oup:erevae:v:38:y:2011:i:1:p:1-29
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbq033
    Download Restriction: Access to full text is restricted to subscribers.

    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. Bramley, Cerkia & Kirsten, Johann F., 2007. "Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
    2. Luis M.B. Cabral, 2000. "Stretching Firm and Brand Reputation," RAND Journal of Economics, The RAND Corporation, pages 658-673.
    3. GianCarlo Moschini, 2003. "Intellectual Property Rights and the World Trade Organization: Retrospect and Prospects," Center for Agricultural and Rural Development (CARD) Publications 03-wp334, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Jason A. Winfree & Jill J. McCluskey, 2005. "Collective Reputation and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 206-213.
    5. Frank H. Fuller & John C. Beghin & Michael Boland & Bruce A. Babcock & William E. Foster, 2006. "Global Prospects for Dairy in Argentina and Chile: Evidence from Field Visits and Model Simulations," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-mbp11, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    6. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    7. Falvey, Rodney E, 1989. "Trade, Quality Reputations and Commercial Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 607-622, August.
    8. Sergio H. Lence & Dermot J. Hayes, 2005. "Genetically Modified Crops: Their Market and Welfare Impacts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 931-950.
    9. Sergio H. Lence & Stéphan Marette & Dermot J. Hayes & William Foster, 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 947-963.
    10. Rafael Rob & Arthur Fishman, 2005. "Is Bigger Better? Customer Base Expansion through Word-of-Mouth Reputation," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1146-1175, October.
    11. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, pages 810-822.
    12. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation : The Case of Coffee," Discussion Papers 33, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    13. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    14. Bar-Isaac, Heski & Tadelis, Steven, 2008. "Seller Reputation," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(4), pages 273-351, August.
    15. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    16. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
    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. Busch, Gesa & Spiller, Achim, 2015. "Real farmer share, perceived farmer share and fair distribution in food chains from a consumers' perspective," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202736, European Association of Agricultural Economists.
    2. Busch, Gesa & Spiller, Achim, 2016. "Farmer share and fair distribution in food chains from a consumer’s perspective," Journal of Economic Psychology, Elsevier, vol. 55(C), pages 149-158.
    3. Bernard, Kévin & Bonein, Aurélie & Bougherara, Douadia, 2016. "Community Supported Agriculture and Preferences for Risk and Fairness," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 234904, Agricultural and Applied Economics Association.
    4. Widmar, Nicole J. Olynk & Byrd, Elizabeth S. & Wolf, Christopher A. & Acharya, Lalatendu, 2016. "Health Consciousness and Consumer Preferences for Holiday Turkey Attributes," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), July.
    5. Van Loo, Ellen J. & Caputo, Vincenzina & Nayga, Rodolfo M. & Verbeke, Wim, 2014. "Consumers’ valuation of sustainability labels on meat," Food Policy, Elsevier, vol. 49(P1), pages 137-150.

    More about this item

    Statistics

    Access and download statistics

    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:oup:erevae:v:38:y:2011:i:1:p:1-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/eaaeeea.html .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.