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Consumer Acceptance of Genetically Modified Foods: Traits, Labels and Diverse Information

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  • Huffman, Wallace E.

Abstract

New experimental economic methods are described and used to assess consumers' willingness to pay for food products that might be made from new transgenic and intragenic genetically modified (GM) traits. Participants in auctions are randomly chosen adult consumers in major US metropolitan areas and not college students. Food labels are kept simple and focus on key attributes of experimental goods. Diverse private information from the agricultural biotech industry (largely Monsanto and Syngenta), environmental groups (largely Greenpeace and Friends of the Earth) and independent third-party information is used to construct the information treatments. Food labels and information treatments are randomized, which is a deviation from traditional lab methods. Auctions are best described as sealed bid random n-th price and not the standard Vickery 2nd price auctions. I show that participants in these experiments respond to both food labels and information treatments, but no single type of information is dominant.

Suggested Citation

  • Huffman, Wallace E., 2010. "Consumer Acceptance of Genetically Modified Foods: Traits, Labels and Diverse Information," Working Papers 93168, Iowa State University, Department of Economics.
    • Handle: RePEc:ags:genres:93168
    DOI: 10.22004/ag.econ.93168
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    References listed on IDEAS

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    1. William W. Wilson & Bruce L. Dahl, 2005. "Costs and Risks of Testing and Segregating Genetically Modified Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 212-228.
    2. Huffman, Wallace, 2004. "Production, Identity Preservation and Labeling in a Market Place with Genetically Modified (GM) and Non-GM Foods," Staff General Research Papers Archive 12335, Iowa State University, Department of Economics.
    3. William W. Wilson & Bruce L. Dahl, 2005. "Costs and Risks of Testing and Segregating Genetically Modified Wheat," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(2), pages 212-228.
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    5. Matthew C. Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2004. "Estimating the Public Value of Conflicting Information: The Case of Genetically Modified Foods," Land Economics, University of Wisconsin Press, vol. 80(1), pages 125-135.
    6. Markosyan, Armenak & Wahl, Thomas I. & McCluskey, Jill J., 2007. "Functional Foods in the Marketplace: Willingness to Pay for Apples Enriched with Antioxidants," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9787, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    8. Tegene, Abebayehu & Huffman, Wallace E. & Rousu, Matthew C. & Shogren, Jason F., 2003. "The Effects Of Information On Consumer Demand For Biotech Foods: Evidence From Experimental Auctions," Technical Bulletins 33577, United States Department of Agriculture, Economic Research Service.
    9. Richard E. Just & Julian M. Alston & David Zilberman (ed.), 2006. "Regulating Agricultural Biotechnology: Economics and Policy," Natural Resource Management and Policy, Springer, number 978-0-387-36953-2, November.
    10. Huffman, Wallace E. & Evenson, Robert E., 1993. "Science for Agriculture: A Long Term Perspective," Staff General Research Papers Archive 10997, Iowa State University, Department of Economics.
    11. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
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    13. Matthew Rousu & Wallace E. Huffman & Jason F. Shogren & Abebayehu Tegene, 2007. "Effects And Value Of Verifiable Information In A Controversial Market: Evidence From Lab Auctions Of Genetically Modified Food," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 409-432, July.
    14. W. Bruce Traill, 2004. "Effect of information about benefits of biotechnology on consumer acceptance of genetically modified food: evidence from experimental auctions in the United States, England, and France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 179-204, June.
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    Cited by:

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    2. Karavolias, Joanna & House, Lisa & Haas, Rainer & Briz, Teresa, "undated". "Impact Of Producer And Use Of Biotechonology On Consumer Willingness To Pay: Discounts Required For Oranges Produced With Biotechnology," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261176, European Association of Agricultural Economists.
    3. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.
    4. Heiman, Amir & Gordon, Ben & Zilberman, David, 2019. "Food beliefs and food supply chains: The impact of religion and religiosity in Israel," Food Policy, Elsevier, vol. 83(C), pages 363-369.
    5. Heiman, Amir, 2015. "Positioning GM Food Product : Benefits, risk and loss aversion considerations," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211475, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).

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