IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/49968.html
   My bibliography  Save this paper

Unstable Individual Preferences and Stable Aggregate Demand: French Consumers’ Willingness to Pay for Farmed and Wild Cod

Author

Listed:
  • Alfnes, Frode
  • Rickertsen, Kyrre

Abstract

We use panel data from two experiments conducted five months a part to investigate the stability of individual preferences and aggregate demand for five types of fish. Even though the bids in the two experiments are positively correlated, they clearly suggest that the individual preferences are unstable. This may be explained by internal desire for variety or by external effects such as new relevant information, seasonality in preferences, changes in the quality of the fish, and changes in the market price of fish. However, the aggregate demand curves of the participants are stable when we control for changes in the perceived quality of the fish and price expectations of the participants. In other words, the stability is generated by aggregation rather than derived from stable individual preferences.

Suggested Citation

  • Alfnes, Frode & Rickertsen, Kyrre, 2009. "Unstable Individual Preferences and Stable Aggregate Demand: French Consumers’ Willingness to Pay for Farmed and Wild Cod," 2009 Conference, August 16-22, 2009, Beijing, China 49968, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:49968
    DOI: 10.22004/ag.econ.49968
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/49968/files/IAAE2009_357%20Alfnes%20and%20Rickertsen_1_.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.49968?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frode Alfnes, 2009. "Valuing product attributes in Vickrey auctions when market substitutes are available," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 133-149, June.
    2. Mattei, Aurelio, 2000. "Full-scale real tests of consumer behavior using experimental data," Journal of Economic Behavior & Organization, Elsevier, vol. 43(4), pages 487-497, December.
    3. McAlister, Leigh & Pessemier, Edgar, 1982. "Variety Seeking Behavior: An Interdisciplinary Review," Journal of Consumer Research, Oxford University Press, vol. 9(3), pages 311-322, December.
    4. Hardle, Wolfgang & Kirman, Alan, 1995. "Nonclassical demand : A model-free examination of price-quantity relations in the Marseille fish market," Journal of Econometrics, Elsevier, vol. 67(1), pages 227-257, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Perception of Economics
      by Per Bylund in Mises Economics Blog on 2014-03-23 18:50:09

    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. Brocas, Isabelle & Carrillo, Juan D. & Combs, T. Dalton & Kodaverdian, Niree, 2019. "The development of consistent decision-making across economic domains," Games and Economic Behavior, Elsevier, vol. 116(C), pages 217-240.
    2. Liberali, Guilherme & Gruca, Thomas S. & Nique, Walter M., 2011. "The effects of sensitization and habituation in durable goods markets," European Journal of Operational Research, Elsevier, vol. 212(2), pages 398-410, July.
    3. Andreoni,J. & Harbaugh,W.T., 2005. "Power indices for revealed preference tests," Working papers 10, Wisconsin Madison - Social Systems.
    4. P. B. Seetharaman & Hai Che, 2009. "Price Competition in Markets with Consumer Variety Seeking," Marketing Science, INFORMS, vol. 28(3), pages 516-525, 05-06.
    5. Cox, James C., 2010. "Some issues of methods, theories, and experimental designs," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 24-28, January.
    6. Frode Alfnes & Chengyan Yue & Helen H. Jensen, 2010. "Cognitive dissonance as a means of reducing hypothetical bias," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(2), pages 147-163, June.
    7. Javornik, Ana & Marder, Ben & Pizzetti, Marta & Warlop, Luk, 2021. "Augmented self - The effects of virtual face augmentation on consumers' self-concept," Journal of Business Research, Elsevier, vol. 130(C), pages 170-187.
    8. Rohm, Andrew J. & Swaminathan, Vanitha, 2004. "A typology of online shoppers based on shopping motivations," Journal of Business Research, Elsevier, vol. 57(7), pages 748-757, July.
    9. repec:dau:papers:123456789/1758 is not listed on IDEAS
    10. Marc-Arthur Diaye & Michal Wong-Urdanivia, 2005. "A simple test of Richter-rationality," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00084390, HAL.
    11. Thomas Ã…stebro & Kevyn Yong, 2016. "Invention Quality and Entrepreneurial Earnings: The Role of Prior Employment Variety," Entrepreneurship Theory and Practice, , vol. 40(2), pages 381-400, March.
    12. Christopher R. Gustafson & Travis J. Lybbert & Daniel A. Sumner, 2016. "Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 91-103, January.
    13. Ponta, Linda & Trinh, Mailan & Raberto, Marco & Scalas, Enrico & Cincotti, Silvano, 2019. "Modeling non-stationarities in high-frequency financial time series," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 173-196.
    14. C. Goukens & S. Dewitte & I. Anthoons, 2003. "When New Feels Good. Enhancing Variety Seeking by Using Subtle Priming," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 469-488.
    15. Daniele Giachini, 2018. "Rationality and Asset Prices under Belief Heterogeneity," LEM Papers Series 2018/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    16. Mantrala, Murali K. & Levy, Michael & Kahn, Barbara E. & Fox, Edward J. & Gaidarev, Peter & Dankworth, Bill & Shah, Denish, 2009. "Why is Assortment Planning so Difficult for Retailers? A Framework and Research Agenda," Journal of Retailing, Elsevier, vol. 85(1), pages 71-83.
    17. Vakeel, Khadija Ali & Fudurić, Morana & Malthouse, Edward C., 2021. "Extending variety seeking to multi-sided platforms: Impact of new retailer listing," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    18. Gallegati, Mauro & Giulioni, Gianfranco & Kirman, Alan & Palestrini, Antonio, 2011. "What’s that got to do with the price of fish? Buyers behavior on the Ancona fish market," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 20-33.
    19. Pradeep K. Chintagunta, 1998. "Inertia and Variety Seeking in a Model of Brand-Purchase Timing," Marketing Science, INFORMS, vol. 17(3), pages 253-270.
    20. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, May.
    21. Gracia, Azucena & de Magistris, Tiziana & Nayga, Rodolfo M., Jr., 2011. "Willingness to pay for a local food label for lamb meat in Spain," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114607, European Association of Agricultural Economists.

    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:ags:iaae09:49968. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.