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Accounting for Heterogeneity in Behavioral Responses to Health-Risk Information Treatments

  • O. Ashton Morgan
  • John C. Whitehead
  • William L. Huth
  • Gregory S. Martin
  • Richard Sjolander

Traditional revealed and stated preference (RP/SP) models consider a typical individual’s behavioral responses to various policy-based information treatments. For some costbenefit applications in which resource managers are concerned with responses from a representative individual, this is sufficient. However, as behavioral responses to information treatments can vary across respondents, we develop a latent class analysis to examine unobserved homogenous subgroup responses to health-risk information treatments. Results from a probabilistic model indicate that homogenous classes of consumers respond differently to the health-risk information treatments. This suggests that future policy-based research could benefit from examining potential heterogeneity in individuals’ responses to risk information treatments in order to fully understand the efficacy of treatments on behavior. Key Words: Food safety technology; health-risk information; latent class analysis; revealed preference; stated preference

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1305.pdf
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Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 13-05.

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Date of creation: 2013
Date of revision:
Handle: RePEc:apl:wpaper:13-05
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Web page: http://www.business.appstate.edu/departments/economics/

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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.
  2. Haab, Timothy C. & Whitehead, John C. & Parsons, George R. & Price, Jammie, 2010. "Effects of information about invasive species on risk perception and seafood demand by gender and race," Resource and Energy Economics, Elsevier, vol. 32(4), pages 586-599, November.
  3. Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
  4. Egan, Kevin & Herriges, Joseph, 2006. "Multivariate count data regression models with individual panel data from an on-site sample," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 567-581, September.
  5. George R. Parsons & Ash O. Morgan & John C. Whitehead & Timothy C. Haab, 2005. "The Welfare Effects of Pfiesteria-Related Fish Kills in Seafood Markets: A Contingent Behavior Analysis," Working Papers 05-01, Department of Economics, Appalachian State University.
  6. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
  7. John C. Whitehead & Timothy C. Haab & Ju-Chin Huang, 1999. "Measuring Recreation Benefits of Quality Improvements with Revealed and Stated Behavior Data," Working Papers 9902, East Carolina University, Department of Economics.
  8. Nancy E. Bockstael & Ivar E. Strand, Jr., 1987. "The Effect of Common Sources of Regression Error on Benefit Estimates," Land Economics, University of Wisconsin Press, vol. 63(1), pages 11-20.
  9. von Haefen, Roger H. & Phaneuf, Daniel J., 2008. "Identifying demand parameters in the presence of unobservables: A combined revealed and stated preference approach," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 19-32, July.
  10. Parsons, George R. & Morgan, Ash & Whitehead, John C. & Haab, Timothy C., 2006. "The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October.
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