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Accounting for Taste: Consumer Valuations for Food-Safety Technologies

Author Info

  • 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

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1109.pdf
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Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 11-09.

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Date of creation: 2011
Date of revision:
Handle: RePEc:apl:wpaper:11-09
Contact details of provider: Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Phone: 828-262-2148
Fax: 828-262-6105
Web page: http://www.business.appstate.edu/departments/economics/
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Find related papers by 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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  7. Hayes, Dermot J. & Shogren, Jason F. & Shin, Seung Youll & Kliebenstein, James, 1995. "Valuing Food Safety in Experimental Auction Markets," Staff General Research Papers 835, Iowa State University, Department of Economics.
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  19. Fox, John A. & Buhr, Brian L. & Shogren, Jason F. & Kliebenstein, James & Hayes, Dermot J., 1995. "Comparison of Preferences for Pork Sandwiches Produced from Animals With and Without Somatotropin Administration (A)," Staff General Research Papers 852, Iowa State University, Department of Economics.
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  25. repec:cup:cbooks:9780521855167 is not listed on IDEAS
  26. Morgan, O. Ashton & Martin, Gregory S. & Huth, William L., 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(03), December.
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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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