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Misassessed Risk In Consumer Valuation Of Food Safety: An Experimental Approach

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Listed:
  • Brown, Jennifer
  • Cranfield, John A.L.
  • Henson, Spencer J.

Abstract

This study estimates Canadian consumers' willingness to pay for food safety improvements and identifies systematic misassessments of food-borne risks. Non-hypothetical experimental auctions were used to elicit consumer valuations of food safety improvement. Consistent with behavioural research, results suggest that subjects generally overestimate the likelihood of becoming ill due to food-borne disease relative to scientifically-estimated odds. Subjects were willing to pay a positive amount to reduce food-safety risk. Risk reductions' valuations increased with higher initial risk, supporting arguments of diminishing marginal value for risk reductions.

Suggested Citation

  • Brown, Jennifer & Cranfield, John A.L. & Henson, Spencer J., 2003. "Misassessed Risk In Consumer Valuation Of Food Safety: An Experimental Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22194
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    References listed on IDEAS

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    11. Roosen, Jutta & Fox, John A. & Hennessy, David A. & Schreiber, Alan, 1998. "Consumers' Valuation Of Insecticide Use Restrictions: An Application To Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
    12. Don Coursey, 1987. "Markets and the measurement of value," Public Choice, Springer, vol. 55(3), pages 291-297, October.
    13. Jason F. Shogren & John A. Fox, 1996. "Consumer Preferences for Fresh Food Items with Multiple Quality Attributes: Evidence from an Experimental Auction of Pork Chops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 916-923.
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    15. Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 1995. "Experimental Auctions to Measure Willingness to Pay for Food Safety," Staff General Research Papers Archive 5343, Iowa State University, Department of Economics.
    16. Fox, John A. & Shogren, Jason F. & Hayes, Dermot J. & Kliebenstein, James B., 1995. "Chapter 06: EXPERIMENTAL AUCTIONS TO MEASURE WILLINGNESS TO PAY FOR FOOD SAFETY," Valuing Food Safety and Nutrition (1995), Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance, number 25986.
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    Cited by:

    1. Cao, Kay & Gibson, John & Scrimgeour, Frank G., 2005. "An Experimental Approach To Estimating Willingess-Topay For Improvements In Food Safety," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137802, Australian Agricultural and Resource Economics Society.

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