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Analysis of Country of Origin Labeling for Food Products in Taiwan Using Auction Experiment with Tasting

  • Chern, Wen S.
  • Lin, Huei-Ching
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    This study attempts to evaluate the economic benefits of the country of origin labeling (COOL) in Taiwan. A Vickrey second-price sealed-bid auction was conducted to estimate the consumer’s willingness to pay for Taiwan products vs. those from China and Vietnam. Our experiment was designed to investigate the impacts of product tasting on bidding behavior. The regression results show that tasting raised bids for Taiwan and China teas, but lowered bids for Vietnam tea. The econometric results show very high premiums for Taiwan products. Taiwanese consumers and food producers stand to benefit greatly with COOL.

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    File URL: http://purl.umn.edu/103219
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    Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103219.

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    Date of creation: 2011
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    Handle: RePEc:ags:aaea11:103219
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    1. Huffman, Wallace E. & Shogren, Jason F. & Rousu, Matthew C. & Tegene, Abebayehu, 2003. "Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
    2. James Rude & Javed Iqbal & Derek Brewin, 2006. "This Little Piggy Went to Market with a Passport: The Impacts of U.S. Country of Origin Labeling on the Canadian Pork Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(3), pages 401-420, 09.
    3. Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001. "A random nth-price auction," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 409-421, December.
    4. Corrigan, Jay R. & Rousu, Matthew C., 2006. "AJAE Appendix: Posted Prices and Bid Affiliation: Evidence from Experimental Auctions," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 88(4), November.
    5. Jay R. Corrigan & Matthew C. Rousu, 2006. "Posted Prices and Bid Affiliation: Evidence from Experimental Auctions," Working Papers 0602, Kenyon College, Department of Economics.
    6. Schupp, Alvin R. & Gillespie, Jeffrey M., 2001. "Handler Reactions To Potential Compulsory Country-Of-Origin Labeling Of Fresh Or Frozen Beef," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(01), April.
    7. Lusk, Jayson L. & Anderson, John D., 2004. "Effects of Country-of-Origin Labeling on Meat Producers and Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
    8. John A. List & Jason F. Shogren, 1999. "Price Information and Bidding Behavior in Repeated Second-Price Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 942-949.
    9. Loureiro, Maria L. & Umberger, Wendy J., 2003. "Estimating Consumer Willingness to Pay for Country-of-Origin Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
    10. Shogren, Jason F. & List, John & Hayes, Dermot J., 2000. "Preference Learning in Consecutive Experimental Auctions," Staff General Research Papers 5023, Iowa State University, Department of Economics.
    11. Colin Carter & Barry Krissoff & Alix Peterson Zwane, 2006. "Can Country-of-Origin Labeling Succeed as a Marketing Tool for Produce? Lessons from Three Case Studies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 513-530, December.
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