IDEAS home Printed from https://ideas.repec.org/a/oup/revage/v31y2009i1p68-87.html
   My bibliography  Save this article

Getting Something from Nothing: An Investigation of Beef Demand Expansion and Substitution

Author

Listed:
  • Michael A. Gunderson
  • Jayson L. Lusk
  • F. Bailey Norwood

Abstract

A relative increase in demand for one type of beef can have one of two potentially countervailing effects: it can cause substitution of one type for another and/or it might expand overall demand. The results of a random parameters logit analysis indicate that regardless of whether USDA Choice or upgraded steak demand increases, the expansion effect dominates the substitution effect. We also show that, for our sample of consumers, the introduction of a new “natural” steak causes a greater reduction in market share for USDA Choice beef than ungraded beef. Despite this result, however, overall steak demand increases. Copyright 2009, Oxford University Press.

Suggested Citation

  • Michael A. Gunderson & Jayson L. Lusk & F. Bailey Norwood, 2009. "Getting Something from Nothing: An Investigation of Beef Demand Expansion and Substitution," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 68-87.
    • Handle: RePEc:oup:revage:v:31:y:2009:i:1:p:68-87
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2008.01426.x
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jayson L. Lusk & Ted C. Schroeder, 2004. "Are Choice Experiments Incentive Compatible? A Test with Quality Differentiated Beef Steaks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(2), pages 467-482.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    3. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2001. "Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 888-902.
    4. Dhar, Tirtha & Foltz, Jeremy D., 2004. "Milk by Any Other Name... Consumer Benefits from Labeled Milk," Working Papers 201547, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    5. Michael K. Wohlgenant, 1993. "Distribution of Gains from Research and Promotion in Multi-Stage Production Systems: The Case of the U.S. Beef and Pork Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 642-651.
    6. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304.
    7. Jayson L. Lusk & Darren Hudson, 2004. "Willingness-to-Pay Estimates and Their Relevance to Agribusiness Decision Making," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 152-169.
    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. Leonardo Casini & Nicola Marinelli & Gabriele Scozzafava, 2013. "Distribuzione organizzata vs. negozio specializzato: uno studio sulle preferenze del consumatore italiano di carne bovina," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(1), pages 157-181.
    2. Scozzafava, Gabriele & Casini, Leonardo & Marinelli, Nicola, 2012. "Modern Distribution vs. Specialised Shop: a Study on beef consumer behaviour," 2012 XX Convegno Annuale SIEA, Siracusa, Italy 130448, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).

    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. Gunderson, Michael A. & Lusk, Jayson L. & Norwood, F. Bailey, 2005. "Getting Something From Nothing: An Investigation of Beef Demand Expansion and Substitution in the Presence of Quality Heterogeneity," 2005 Annual meeting, July 24-27, Providence, RI 19465, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl Johan, 2004. "Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs," Working Papers in Economics 149, University of Gothenburg, Department of Economics.
    3. Melanie Lefevre, 2011. "Willingness-to-pay for Local Milk-based Dairy Product in Senegal," CREPP Working Papers 1108, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    4. Kesternich, Iris & Heiss, Florian & McFadden, Daniel & Winter, Joachim, 2013. "Suit the action to the word, the word to the action: Hypothetical choices and real decisions in Medicare Part D," Journal of Health Economics, Elsevier, vol. 32(6), pages 1313-1324.
    5. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    6. Ana I. Sanjuán‐López & Helena Resano‐Ezcaray, 2020. "Labels for a Local Food Speciality Product: The Case of Saffron," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 778-797, September.
    7. Danso, G. K. & Otoo, Miriam & Duy Linh, N. & Madurangi, Ganesha, "undated". "Households’ willingness-to-pay for fish product attributes and implications for market feasibility of wastewater-based aquaculture businesses in Hanoi, Vietnam," Papers published in Journals (Open Access) H048216, International Water Management Institute.
    8. Van Loo, Ellen J. & Caputo, Vincenzina & Lusk, Jayson L., 2020. "Consumer preferences for farm-raised meat, lab-grown meat, and plant-based meat alternatives: Does information or brand matter?," Food Policy, Elsevier, vol. 95(C).
    9. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    10. Balogh, Péter & Békési, Dániel & Gorton, Matthew & Popp, József & Lengyel, Péter, 2016. "Consumer willingness to pay for traditional food products," Food Policy, Elsevier, vol. 61(C), pages 176-184.
    11. George K. Danso & Miriam Otoo & William Ekere & Stanley Ddungu & Ganesha Madurangi, 2017. "Market Feasibility of Faecal Sludge and Municipal Solid Waste-Based Compost as Measured by Farmers’ Willingness-to-Pay for Product Attributes: Evidence from Kampala, Uganda," Resources, MDPI, vol. 6(3), pages 1-17, July.
    12. Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Löfgren, Åsa & Qin, Ping & Sterner, Thomas, 2013. "A fair share: Burden-sharing preferences in the United States and China," Resource and Energy Economics, Elsevier, vol. 35(1), pages 1-17.
    13. Nakelse, T. & Dalton, T., 2018. "Are Urban Consumers in Niger Willing to Pay for Safe and Nutritious Food?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277459, International Association of Agricultural Economists.
    14. Wongprawmas, Rungsaran & Canavari, Maurizio, 2015. "Heterogeneity in consumer preferences for food safety lavel in Thailand," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202744, European Association of Agricultural Economists.
    15. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    16. Andrew M. Johnson & Tahirou Abdoulaye & Bamikole Ayedun & Joan R. Fulton & Nicole J. Olynk Widmar & Akande Adebowale & Ranajit Bandyopadhyay & Victor Manyong, 2020. "Willingness to pay of Nigerian poultry producers and feed millers for aflatoxin‐safe maize," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 299-317, April.
    17. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    18. Meenakshi, J.V. & Banerji, A. & Manyong, Victor & Tomlins, Keith & Mittal, Nitya & Hamukwala, Priscilla, 2012. "Using a discrete choice experiment to elicit the demand for a nutritious food: Willingness-to-pay for orange maize in rural Zambia," Journal of Health Economics, Elsevier, vol. 31(1), pages 62-71.
    19. Carlsson, Fredrik & Grykblom, Peter & Lagerkvist, Carl Johan, 2007. "Farm Animal Welfare - Testing for Market Failure," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(1), pages 1-13, April.
    20. Yamada, Katsunori & Sato, Masayuki, 2013. "Another avenue for anatomy of income comparisons: Evidence from hypothetical choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 35-57.

    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:revage:v:31:y:2009:i:1:p:68-87. 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: Oxford University Press or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.