IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277155.html
   My bibliography  Save this paper

Preferences for healthy and environmentally sustainable food: Combining induced-value and home-grown experiments

Author

Listed:
  • Cerroni, S.
  • Watson, V.
  • Macdiarmid, J.

Abstract

This paper tests if Second Price Vickrey Auction (SPVA) and Discrete Choice Experiment (DCE) are isomorphic and whether lack of isomorphism is due to value-elicitation, value-formation or both. We conduct an artefactual field experiment that combines induced-value (IV) and home-grown (HG) procedures using SPVA and DCE. IV preferences are elicited for tokens and HG preferences for multi-attribute lasagnes. Attributes are healthiness and environmental sustainability. Our results suggest that HG preferences differ across elicitation methods. This discrepancy is due to value-elicitation and value-formation. DCE is the most demand-revealing approach and provides the highest premiums for healthy and environmentally sustainable lasagnes. Acknowledgement :

Suggested Citation

  • Cerroni, S. & Watson, V. & Macdiarmid, J., 2018. "Preferences for healthy and environmentally sustainable food: Combining induced-value and home-grown experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277155, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277155
    DOI: 10.22004/ag.econ.277155
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277155/files/1139.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277155?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. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December.
    2. 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.
    3. Grebitus, Carola & Lusk, Jayson L. & Nayga, Rodolfo M., 2013. "Explaining differences in real and hypothetical experimental auctions and choice experiments with personality," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 11-26.
    4. Lusk Jayson L & Schroeder Ted C., 2006. "Auction Bids and Shopping Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-39, August.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    6. Glenn W. Harrison & Ronald M. Harstad & E. Elisabet Rutstr–m, 2004. "Experimental Methods and Elicitation of Values," Experimental Economics, Springer;Economic Science Association, vol. 7(2), pages 123-140, June.
    7. Luchini, S. & Watson, V., 2014. "Are choice experiments reliable? Evidence from the lab," Economics Letters, Elsevier, vol. 124(1), pages 9-13.
    8. Lusk,Jayson L. & Shogren,Jason F., 2007. "Experimental Auctions," Cambridge Books, Cambridge University Press, number 9780521671248, September.
    9. Cummings, Ronald G & Elliott, Steven & Harrison, Glenn W & Murphy, James, 1997. "Are Hypothetical Referenda Incentive Compatible?," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 609-621, June.
    10. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    11. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    12. Christian Vossler & Michael McKee, 2006. "Induced-Value Tests of Contingent Valuation Elicitation Mechanisms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(2), pages 137-168, October.
    13. Balcombe, Kelvin & Fraser, Iain & Falco, Salvatore Di, 2010. "Traffic lights and food choice: A choice experiment examining the relationship between nutritional food labels and price," Food Policy, Elsevier, vol. 35(3), pages 211-220, June.
    14. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    15. Faical Akaichi & Rodolfo M. Nayga & Lawton Lanier Nalley, 2017. "Are there trade-offs in valuation with respect to greenhouse gas emissions, origin and food miles attributes?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 3-31.
    16. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    17. Karni, Edi & Safra, Zvi, 1987. ""Preference Reversal' and the Observability of Preferences by Experimental Methods," Econometrica, Econometric Society, vol. 55(3), pages 675-685, May.
    18. Horowitz, John K., 2006. "The Becker-DeGroot-Marschak mechanism is not necessarily incentive compatible, even for non-random goods," Economics Letters, Elsevier, vol. 93(1), pages 6-11, October.
    19. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(4), pages 1-9, January.
    20. Coppinger, Vicki M & Smith, Vernon L & Titus, Jon A, 1980. "Incentives and Behavior in English, Dutch and Sealed-Bid Auctions," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 1-22, January.
    21. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    22. Kagel, John H & Harstad, Ronald M & Levin, Dan, 1987. "Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study," Econometrica, Econometric Society, vol. 55(6), pages 1275-1304, November.
    23. David L. Dickinson, 2004. "Negative Values in Vickrey Auctions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 222-235.
    24. Kagel, John H & Levin, Dan, 1993. "Independent Private Value Auctions: Bidder Behaviour in First-, Second- and Third-Price Auctions with Varying Numbers of Bidders," Economic Journal, Royal Economic Society, vol. 103(419), pages 868-879, July.
    25. John A. List (ed.), 2006. "Using Experimental Methods in Environmental and Resource Economics," Books, Edward Elgar Publishing, number 4180.
    26. William Greene & David Hensher, 2010. "Does scale heterogeneity across individuals matter? An empirical assessment of alternative logit models," Transportation, Springer, vol. 37(3), pages 413-428, May.
    27. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    28. Caputo, Vincenzina & Nayga, Rodolfo M. Jr. & Scarpa, Riccardo, 2013. "Food miles or carbon emissions? Exploring labelling preference for food transport footprint with a stated choice study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-18.
    29. Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
    30. Smith, Vernon L, 1976. "Experimental Economics: Induced Value Theory," American Economic Review, American Economic Association, vol. 66(2), pages 274-279, May.
    Full references (including those not matched with items on IDEAS)

    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. Maurizio Canavari & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga, Jr., 2018. "How to run an experimental auction: A review of recent advances," Working Papers 2018-5, Agricultural University of Athens, Department Of Agricultural Economics.
    2. Bazzani, Claudia & Nayga, Rodolfo M. Jr. & Caputo, Vincenzina & Canavari, Maurizio & Danforth, Diana M., 2016. "On the Use of the BDM Mechanism in Non-Hypothetical Choice Experiments," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235904, Agricultural and Applied Economics Association.
    3. Bernard Ruffieux & Anne Rozan & Stéphane Robin, 2008. "Mesurer les préférences du consommateur pour orienter les décisions des pouvoirs publics : l'apport de la méthode expérimentale," Économie et Prévision, Programme National Persée, vol. 182(1), pages 113-127.
    4. West, Grant H. & Snell, Heather & Kovacs, Kent & Nayga, Rodolfo M., 2020. "Estimation of the preferences for the intertemporal services from groundwater," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304220, Agricultural and Applied Economics Association.
    5. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    6. Jacquemet, Nicolas & Joule, Robert-Vincent & Luchini, Stéphane & Shogren, Jason F., 2013. "Preference elicitation under oath," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 110-132.
    7. Wensing, Joana & Caputo, Vincenzina & Carraresi, Laura & Bröring, Stefanie, 2020. "The effects of green nudges on consumer valuation of bio-based plastic packaging," Ecological Economics, Elsevier, vol. 178(C).
    8. Sebastian Lehmann, 2014. "Toward an Understanding of the BDM: Predictive Validity, Gambling Effects, and Risk Attitude," FEMM Working Papers 150001, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    9. Mohammed Hussen Alemu & Søren Bøye Olsen, 2020. "An analysis of the impacts of tasting experience and peer effects on consumers’ willingness to pay for novel foods," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 653-674, October.
    10. 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).
    11. Rosato, Antonio & Tymula, Agnieszka A., 2024. "A novel experimental test of truthful bidding in second-price auctions with real objects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).
    12. John K. Horowitz & Kenneth E. McConnell & James J. Murphy, 2013. "Behavioral foundations of environmental economics and valuation," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 4, pages 115-156, Edward Elgar Publishing.
    13. James Murphy & Thomas Stevens & Lava Yadav, 2010. "A Comparison of Induced Value and Home-Grown Value Experiments to Test for Hypothetical Bias in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 111-123, September.
    14. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    15. Franziska Voelckner, 2006. "An empirical comparison of methods for measuring consumers’ willingness to pay," Marketing Letters, Springer, vol. 17(2), pages 137-149, April.
    16. Chavez, Daniel E. & Palma, Marco A. & Nayga, Rodolfo M. & Mjelde, James W., 2020. "Product availability in discrete choice experiments with private goods," Journal of choice modelling, Elsevier, vol. 36(C).
    17. Zemo, Kahsay Haile & Termansen, Mette, 2018. "Farmers’ willingness to participate in collective biogas investment: A discrete choice experiment study," Resource and Energy Economics, Elsevier, vol. 52(C), pages 87-101.
    18. Dragicevic, Arnaud Z. & Ettinger, David, 2011. "Private Valuation of a Public Good in Three Auction Mechanisms," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 2(2), pages 1-29, April.
    19. Ballco, Petjon & Gracia, Azucena, 2020. "Do market prices correspond with consumer demands? Combining market valuation and consumer utility for extra virgin olive oil quality attributes in a traditional producing country," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    20. 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.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iaae18:277155. See general information about how to correct material in RePEc.

    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. RePEc uses bibliographic data supplied by the respective publishers.