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Measuring the Impact of Traceability Information on Oyster Consumer Behavior Following a Contamination Event

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  • O. Ashton Morgan
  • John C. Whitehead
  • William L. Huth

Abstract

We fuse and jointly estimate revealed and stated preference data over the BP Deepwater Horizon oil spill time horizon to analyze the potential for a new seafood traceability system to mitigate long-run decreases in product demand following a major contamination event. Findings indicate that traceability information flows that provide more precise information to oyster consumers regarding the location of harvest ameliorate consumers’ perceived risk of eating oyster meals after the spill, leading to a significant increase in demand. Further, the magnitude of the increase is greater than the negative long-term, post-spill effects, leading to overall welfare gains. However, any price increase associated with the information will mitigate the initial welfare gains. Overall, our findings suggest that the potential success of a new seafood traceability system depends on implementation costs and the extent to which price increases are passed on to consumers.

Suggested Citation

  • O. Ashton Morgan & John C. Whitehead & William L. Huth, 2018. "Measuring the Impact of Traceability Information on Oyster Consumer Behavior Following a Contamination Event," Marine Resource Economics, University of Chicago Press, vol. 33(4), pages 387-400.
    • Handle: RePEc:ucp:mresec:doi:10.1086/698994
    DOI: 10.1086/698994
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