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Health Benefits and Uncertainty: An Experimental Analysis of the Effects of Risk Presentation on Auction Bids for a Healthful Product

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  • Shaw, W. Douglass
  • Nayga, Rodolfo M., Jr.
  • Silva, Andres

Abstract

Experimental subjects receive a different presentation of a food product's potential health risk reductions if people habitually eat it, and then asked to bid for the product. Results suggest that the bids vary across the groups that receive differing risk information.

Suggested Citation

  • Shaw, W. Douglass & Nayga, Rodolfo M., Jr. & Silva, Andres, 2005. "Health Benefits and Uncertainty: An Experimental Analysis of the Effects of Risk Presentation on Auction Bids for a Healthful Product," Discussion Papers 23961, Texas A&M University, Department of Agricultural Economics.
    • Handle: RePEc:ags:tamudp:23961
    DOI: 10.22004/ag.econ.23961
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    References listed on IDEAS

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    1. 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.
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    5. Starmer, Chris & Sugden, Robert, 1991. "Does the Random-Lottery Incentive System Elicit True Preferences? An Experimental Investigation," American Economic Review, American Economic Association, vol. 81(4), pages 971-978, September.
    6. Peter Wakker & Daniel Deneffe, 1996. "Eliciting von Neumann-Morgenstern Utilities When Probabilities Are Distorted or Unknown," Management Science, INFORMS, vol. 42(8), pages 1131-1150, August.
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    Cited by:

    1. Silva, Andres & Nayga, Rodolfo M., Jr. & Campbell, Benjamin L. & Park, John L., 2007. "On the Use of Valuation Mechanisms to Measure Consumers' Willingness to Pay for Novel Products: A Comparison of Hypothetical and Non-Hypothetical Values," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-16.
    2. Azucena GRACIA & Tiziana DE-MAGISTRIS, 2015. "The role of participants' competitiveness in consumers' valuation for food products using experimental auctions," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 484-491.
    3. Nayga, Rodolfo M., Jr. & Shaw, W. Douglass & Silva, Andres, 2006. "The Effect of Risk Presentation on Product Valuation: An Experimental Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21429, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Shaw, W. Douglass & Woodward, Richard T., 2008. "Why environmental and resource economists should care about non-expected utility models," Resource and Energy Economics, Elsevier, vol. 30(1), pages 66-89, January.
    5. Melkonyan, Tigran A., 2011. "The Effect of Communicating Ambiguous Risk Information on Choice," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-21, August.

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    More about this item

    Keywords

    Risk and Uncertainty;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I1 - Health, Education, and Welfare - - Health

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