IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/49986.html
   My bibliography  Save this paper

Consumers’ Willingness to Pay for New Genetically Modified Food Products: Evidence from Experimental Auctions of Intragenic and Transgenic Foods

Author

Listed:
  • Colson, Gregory
  • Huffman, Wallace E.

Abstract

Early GM traits were obtained by transferring genes across species, largely from soil bacteria. Part of the consumer resistance to them has been their transgenic nature. Recently, breakthroughs have occurred using intragenic bioengineering where genes are moved long distances within a specie, for example in potato, and without antibiotic markers. The objective of this research is to assess consumers’ acceptance and willingness to pay (WTP) for new intragenic fresh potato, tomato, and broccoli with higher levels of antioxidants and vitamin C, which are consumer traits. To elicit consumer valuations, a new series of experimental auctions were conducted in 2007 that built upon methodology developed in our earlier research. WTP was assessed in a multi-round n-th price auction with seven labeling treatments and five information treatments. We show for the first time that consumers are willing to pay significantly more for intragenic GM vegetables with enhanced levels of antioxidants and vitamin C than for a plain-labeled product and marginally more than for a GM-free product. Supporting earlier research, consumers’ WTP for GM food products is affected by the type of information available to them when they are making their decisions. The findings suggest potential success for future intragenic GM fresh produce.

Suggested Citation

  • Colson, Gregory & Huffman, Wallace E., 2009. "Consumers’ Willingness to Pay for New Genetically Modified Food Products: Evidence from Experimental Auctions of Intragenic and Transgenic Foods," 2009 Conference, August 16-22, 2009, Beijing, China 49986, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:49986
    DOI: 10.22004/ag.econ.49986
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/49986/files/GMIAAEChina112508allab.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
    3. Ho-Chuan Huang, 2001. "Bayesian analysis of the SUR Tobit model," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 617-622.
    4. Mario Mazzocchi & Gianluca Stefani & Spencer J. Henson, 2004. "Consumer Welfare and the Loss Induced by Withholding Information: The Case of BSE in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(1), pages 41-58, March.
    5. Jayson L. Lusk & Matthew Rousu, 2006. "Market Price Endogeneity and Accuracy of Value Elicitation Mechanisms," Chapters, in: John A. List (ed.), Using Experimental Methods in Environmental and Resource Economics, chapter 2, Edward Elgar Publishing.
    6. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    7. Fox, John A & Hayes, Dermot J & Shogren, Jason F, 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Journal of Risk and Uncertainty, Springer, vol. 24(1), pages 75-95, January.
    8. Mazzocchi, Mario & Stefani, Gianluca, 2002. "Consumer Welfare and the Loss Induced by Withheld Information: The Case of BSE in Italy," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24927, European Association of Agricultural Economists.
    9. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521671248.
    10. Nobile, Agostino, 2000. "Comment: Bayesian multinomial probit models with a normalization constraint," Journal of Econometrics, Elsevier, vol. 99(2), pages 335-345, December.
    11. 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.
    12. 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, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 179-204, June.
    13. Jay R. Corrigan & Matthew C. Rousu, 2006. "The Effect of Initial Endowments in Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 448-457.
    14. John List & Michael Price, 2013. "Using Field Experiments in Environmental and Resource Economics," Artefactual Field Experiments 00447, The Field Experiments Website.
    15. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 396-405.
    16. Lusk, Jayson L. & Pruitt, J.R. & Norwood, Bailey, 2006. "External validity of a framed field experiment," Economics Letters, Elsevier, vol. 93(2), pages 285-290, November.
    17. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
    18. Wuyang Hu & Michele M. Veeman & Wiktor L. Adamowicz, 2005. "Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 83-102, March.
    19. Foster, William & Just, Richard E., 1989. "Measuring welfare effects of product contamination with consumer uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 266-283, November.
    20. Frode Alfnes & Kyrre Rickertsen, 2005. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 258-260.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ran, Tao & Yue, Chengyan & Rihn, Alicia, 2015. "Are Grocery Shoppers of Households with Weight-Concerned Members Willing to Pay More for Nutritional Information on Food?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-18, November.
    2. Huffman, Wallace E., 2008. "Rising Food and Energy Prices: Projections for Labor Markets 2008-18 and Beyond," Working Papers 44874, Iowa State University, Department of Economics.
    3. Hans D. Steur & Jeroen Buysse & Shuyi Feng & Xavier Gellynck, 2013. "Role of Information on Consumers’ Willingness-to-pay for Genetically-modified Rice with Health Benefits: An Application to China," Asian Economic Journal, East Asian Economic Association, vol. 27(4), pages 391-408, December.
    4. Marette, Stéphan & Roosen, Jutta & Blanchemanche, Sandrine & Feinblatt-Mélèze, Eve, 2010. "Functional food, uncertainty and consumers' choices: A lab experiment with enriched yoghurts for lowering cholesterol," Food Policy, Elsevier, vol. 35(5), pages 419-428, October.
    5. Gregory Colson & Jay R. Corrigan & Carola Grebitus & Maria L. Loureiro & Matthew C. Rousu, 2016. "Which Deceptive Practices, If Any, Should Be Allowed in Experimental Economics Research? Results from Surveys of Applied Experimental Economists and Students," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 610-621.
    6. Dila Ikiz & R. Karina Gallardo & Amit Dhingra & Seanna Hewitt, 2018. "Assessing consumers’ preferences and willingness to pay for novel sliced packed fresh pears: A latent class approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 321-337, March.
    7. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.
    8. Lusk, Jayson L. & McFadden, Brandon R. & Wilson, Norbert, 2018. "Do consumers care how a genetically engineered food was created or who created it?," Food Policy, Elsevier, vol. 78(C), pages 81-90.
    9. R. Karina Gallardo & Ines Hanrahan & Chengyan Yue & Vicki A. McCracken & James Luby & James R. McFerson & Carolyn Ross & Lilian Carrillo†Rodriguez, 2018. "Combining sensory evaluations and experimental auctions to assess consumers’ preferences for fresh fruit quality characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 407-425, March.
    10. Huffman, Wallace, 2009. "Technology and Innovation in World Agriculture: Prospects for 2010-2019," Staff General Research Papers Archive 13060, Iowa State University, Department of Economics.
    11. Yang Yang & Jill E. Hobbs, 2020. "The Power of Stories: Narratives and Information Framing Effects in Science Communication," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1271-1296, August.
    12. Yang, Y. & Hobbs, J., 2018. "Information Framing Effects in Biotechnology Communication A Comparison between Logical-scientific and Narrative Information," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277010, International Association of Agricultural Economists.
    13. Gautam, Ruskin & Gustafson, Christopher R. & Brooks, Kathleen R., 2017. "Label Position and it Impacts on WTP for Products Containing GMO," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258105, Agricultural and Applied Economics Association.
    14. Huffman, Wallace, 2008. "Rising Food and Energy Prices: Projections for Labor Markets 2008-18 and Beyond," Staff General Research Papers Archive 13000, Iowa State University, Department of Economics.
    15. McFadden, Jonathan R. & Huffman, Wallace E., 2017. "Consumer valuation of information about food safety achieved using biotechnology: Evidence from new potato products," Food Policy, Elsevier, vol. 69(C), pages 82-96.
    16. Zilberman, David & Kaplan, Scott & Kim, Eunice & Waterfield, Gina, 2013. "Lessons from the California GM Labeling Proposition on the State of Crop Biotechnology," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149851, Agricultural and Applied Economics Association.
    17. Jane Kolodinsky & Sean Morris & Orest Pazuniak, 2019. "How consumers use mandatory genetic engineering (GE) labels: evidence from Vermont," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 117-125, March.

    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. Colson, Gregory & Huffman, Wallace E. & Rousu, Matthew C., 2011. "Improving the Nutrient Content of Food through Genetic Modification: Evidence from Experimental Auctions on Consumer Acceptance," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-22, August.
    2. Colson, Gregory, 2009. "Improving nutrient content through genetic modification: Evidence from experimental auctions on consumer acceptance and willingness to pay for intragenic foods," ISU General Staff Papers 200901010800001872, Iowa State University, Department of Economics.
    3. 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.
    4. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    5. Rousu, Matthew C. & Nonnemaker, James & Farrelly, Matthew, 2009. "The Value of Countermarketing Information to Smokers: Evidence from Field Auctions," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49219, Agricultural and Applied Economics Association.
    6. Rousu, Matthew C. & Nonnemaker, James & Farrelly, Matthew, 2011. "Choosing a Cigarette Brand: Determining the Value of Countermarketing Information to Smokers Using Field Auctions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(4), pages 1-14, November.
    7. Kyriaki Remoundou & Andreas Drichoutis & Phoebe Koundouri, "undated". "Warm glow in charitable auctions: Are the WEIRDos driving the results?," DEOS Working Papers 1026, Athens University of Economics and Business.
    8. 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.
    9. Jay R. Corrigan & Matthew C. Rousu, 2006. "Posted Prices and Bid Affiliation: Evidence from Experimental Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1078-1090.
    10. Rousu, Matthew C. & Marette, Stéphan & Thrasher, James F. & Lusk, Jayson L., 2014. "The economic value to smokers of graphic warning labels on cigarettes: Evidence from combining market and experimental auction data," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 123-134.
    11. David M. Bruner & William L. Huth & David M. McEvoy & O. Ashton Morgan, 2011. "Accounting for Taste: Consumer Valuations for Food-Safety Technologies," Working Papers 11-09, Department of Economics, Appalachian State University.
    12. Jay Corrigan & Matthew Rousu, 2008. "Estimating the value consumers derive from product labeling," Framed Field Experiments 00192, The Field Experiments Website.
    13. Disdier, Anne-Célia & Marette, Stéphan, 2012. "How do consumers in developed countries value the environment and workers’ social rights in developing countries?," Food Policy, Elsevier, vol. 37(1), pages 1-11.
    14. Banerji, A. & Chowdhury, Shyamal K. & de Groote, Hugo & Meenakshi, Jonnalagadda V. & Haleegoah, Joyce & Ewoo, Manfred, 2013. "Using elicitation mechanisms to estimate the demand for nutritious maize: Evidence from experiments in rural Ghana," HarvestPlus working papers 10, International Food Policy Research Institute (IFPRI).
    15. GianCarlo Moschini, 2008. "Biotechnology and the development of food markets: retrospect and prospects," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(3), pages 331-355, September.
    16. Disdier, Anne-Célia & Marette, Stéphan & Millet, Guy, 2013. "Are consumers concerned about palm oil? Evidence from a lab experiment," Food Policy, Elsevier, vol. 43(C), pages 180-189.
    17. Andreas C. Drichoutis & Panagiotis Lazaridis & Rodolfo M. Nayga, 2009. "Would consumers value food-away-from-home products with nutritional labels?," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 550-575.
    18. Lusk, Jayson L., 2016. "From Farm Income to Food Consumption: Valuing USDA Data Products," C-FARE Reports 266593, Council on Food, Agricultural, and Resource Economics (C-FARE).
    19. Han, Doo Bong & Nayga, Rodolfo M., Jr. & Lee, Ji Yong & Yoon, Jong Min, 2012. "Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119817, Southern Agricultural Economics Association.
    20. Anne-Célia Disdier & Stéphan Marette, 2012. "Taxes, minimum-quality standards and/or product labeling to improve environmental quality and welfare: Experiments can provide answers," Journal of Regulatory Economics, Springer, vol. 41(3), pages 337-357, June.

    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

    Statistics

    Access and download statistics

    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:iaae09:49986. 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: (AgEcon Search). 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 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.

    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.