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Alternative Calibration And Auction Institutions For Predicting Consumer Willingness-To-Pay For Non-Genetically Modified Corn Chips

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Listed:
  • Lusk, Jayson L.
  • Daniel, M. Scott
  • Mark, Darrell R.
  • Lusk, Christine L.

Abstract

This study explores two important issues in experimental economics: calibration and auction institution. Consumer willingness-to-pay bids for corn chips made with non-genetically modified ingredients are elicited from a 1st price and 2nd price auction. Results suggest that responses to scale differential questions, in a survey, accurately predict consumer willingness-to-pay bids. The 2 nd price auction induces a greater percentage of marginal bidders to offer a positive bid than a 1st price auction. However, average bid levels in the 1st and 2nd price auctions were not statistically different from one other. In a small and unrepresentative sample, 70 percent of student participants were unwilling to pay to exchange a bag of genetically modified corn chips for a bag of non-genetically modified corn chips. However, 20 percent of respondents were willing to pay at least $0.25/oz for the exchange.

Suggested Citation

  • Lusk, Jayson L. & Daniel, M. Scott & Mark, Darrell R. & Lusk, Christine L., 2000. "Alternative Calibration And Auction Institutions For Predicting Consumer Willingness-To-Pay For Non-Genetically Modified Corn Chips," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36424, Western Agricultural Economics Association.
  • Handle: RePEc:ags:waeava:36424
    DOI: 10.22004/ag.econ.36424
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