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Accounting for Taste: Consumer Valuations for Food-Safety Technologies

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  • David M. Bruner
  • William L. Huth
  • David M. McEvoy
  • O. Ashton Morgan

Abstract

Consumers’ willingness-to-pay (WTP) for post-harvest processed (PHP) raw oysters – oysters without health risks – is studied in experimental nth-price auction markets. The experimental design decomposes the effects of taste, objective risk information, and information on four PHP technologies on consumers’ valuations. Results show that relatively uninformed consumers are willing to pay equivalent amounts for PHP and traditional raw oysters. However, after a blind taste test consumers are willing to pay a significant premium for traditional raw oysters. The premium for traditional oysters persists after objective information on risk and processing technology is provided. The results are robust over PHP technologies. Key Words: experimental auction market, food safety, risk preference elicitation, consumer perceptions, oysters

Suggested Citation

  • 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.
    • Handle: RePEc:apl:wpaper:11-09
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1109.pdf
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    Cited by:

    1. John C. Whitehead & O. Ashton Morgan & William L. Huth & Gregory S. Martin & Richard Sjolander, 2012. "Willingness-to-Pay for Oyster Consumption Mortality Risk Reductions," Working Papers 12-07, Department of Economics, Appalachian State University.

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    More about this item

    Keywords

    experimental auction market; food safety; risk preference elicitation; consumer perceptions; oysters;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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