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Willingness-to-pay for food safety: An experimental investigation of quality certification on bidding behaviour

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  • Anne Rozan
  • Anne Stenger
  • Marc Willinger

Abstract

We study the impact of new information about food safety on subjects' willingness-to-pay for food products, in an experimental setting. We elicit prices using either a second price auction or the Becker-DeGroot-Marschak procedure. There are three stages of bidding. In stage 1, subjects bid for products without any information. In stage 2, public information about health impact is provided. In stage 3, new certified products become available, and subjects bid then for non-certified and certified products. The introduction of certified products induces an asymmetric updating of initial bids, bids for non-certified products are lowered, but bids for certified products remain equal to the initial bids.

Suggested Citation

  • Anne Rozan & Anne Stenger & Marc Willinger, 2004. "Willingness-to-pay for food safety: An experimental investigation of quality certification on bidding behaviour," Framed Field Experiments 00197, The Field Experiments Website.
  • Handle: RePEc:feb:framed:00197
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    Cited by:

    1. Dragicevic, Arnaud Z. & Ettinger, David, 2011. "Private Valuation of a Public Good in Three Auction Mechanisms," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 2(02), pages 1-29, April.
    2. Bazoche, P. & Deola, C. & Soler, Louis-Georges, 2008. "An experimental study of wine consumers’ willingness to pay for environmental characteristics," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43651, European Association of Agricultural Economists.
    3. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    4. repec:gam:jsusta:v:9:y:2017:i:8:p:1340-:d:106466 is not listed on IDEAS
    5. Kyriaki Remoundou & Andreas C. Drichoutis & Phoebe Koundouri, 2013. "Isolating Warm Glow in Charitable Auction Giving," GRI Working Papers 131, Grantham Research Institute on Climate Change and the Environment.
    6. Russo, Carlo & Perito, Maria Angela & Di Fonzo, Antonella, 2011. "Our products are safe (don't tell anyone!). Why don't supermarkets advertise their private food safety standards?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115987, European Association of Agricultural Economists.
    7. Andreas Drichoutis & Phoebe Koundouri & Mavra Stithou, 2013. "A Laboratory Experiment for the Estimation of Health Risks: Policy Recommendations," DEOS Working Papers 1316, Athens University of Economics and Business.
    8. Shi, Lijia & Gao, Shifeng & House, Lisa A. & Heng, Yan, 2015. "A Multi-Store Auction to Measure Willingness-to-Pay for Organic and Lcoal Blueberries," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), November.
    9. Levitt, Steven D. & List, John A., 2009. "Field experiments in economics: The past, the present, and the future," European Economic Review, Elsevier, vol. 53(1), pages 1-18, January.
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    12. Bernard Ruffieux & Anne Rozan & Stéphane Robin, 2008. "Mesurer les préférences du consommateur pour orienter les décisions des pouvoirs publics : l'apport de la méthode expérimentale," Économie et Prévision, Programme National Persée, vol. 182(1), pages 113-127.
    13. Jaqueline Garcia-Yi, 2014. "Market-Based Instruments for the Conservation of Underutilized Crops: In-Store Experimental Auction of Native Chili Products in Bolivia," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-19, November.
    14. Russo, Carlo & Perito, Maria Angel & Di Fonzo, Antonella, 2014. "The Strategic Use of Private Food Safety Standards to Manage Complexity: a Moral Hazard Perspective," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182795, European Association of Agricultural Economists.
    15. Yue, Chengyan & Alfnes, Frode & Jensen, Helen H., 2009. "Discounting Spotted Apples: Investigating Consumersï¾’ Willingness to Accept Cosmetic Damage in an Organic Product," Staff General Research Papers Archive 12693, Iowa State University, Department of Economics.
    16. Hellyer, Nicole Elizabeth & Fraser, Iain & Haddock-Fraser, Janet, 2010. "Food Choice, Nutritional Information And Functional Ingredients: An Experimental Auction Employing Bread," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116424, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    17. Shi, Lijia & House, Lisa & Gao, Zhifeng, 2012. "Consumers’ Willingness-to-pay for Organic and Local Blueberries: A Multi-store BDM Auction Controlling for Purchase Intentions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124998, Agricultural and Applied Economics Association.
    18. Nababan, Tongam Sihol & Simanjuntak, Juara, 2008. "Aplikasi Willingness To Pay Sebagai Proksi Terhadap Variabel Harga: Suatu Model Empirik Dalam Estimasi Permintaan Energi Listrik Rumah Tangga
      [The Application of Willingness To Pay As A Proxy To Va
      ," MPRA Paper 49155, University Library of Munich, Germany.
    19. Combris, Pierre & Pinto, Alexandra Seabra & Fragata, Antonio & Giraud-Heraud, Eric, 2007. "Does taste beat food safety? Evidence from the Pera Rocha case in Portugal," 105th Seminar, March 8-10, 2007, Bologna, Italy 7879, European Association of Agricultural Economists.
    20. Hellyer, Nicole Elizabeth & Fraser, Iain & Haddock-Fraser, Janet, 2012. "Food choice, health information and functional ingredients: An experimental auction employing bread," Food Policy, Elsevier, vol. 37(3), pages 232-245.
    21. Jan Mei Soon & Richard N. Baines, 2013. "Public and Private Food Safety Standards: Facilitating or Frustrating Fresh Produce Growers?," Laws, MDPI, Open Access Journal, vol. 2(1), pages 1-19, January.
    22. Eric Giraud-Héraud & Maria Aguiar Fontes & Alexandra Seabra Pinto, 2014. "Crise sanitaires de l'alimentation et analyses comportementales," Working Papers hal-00949126, HAL.
    23. Maria Aguiar Fontes & Eric Giraud-Héraud & Alexandra Seabra Pinto, 2013. "Consumers' behaviour towards food safety: A litterature review," Working Papers hal-00912476, HAL.
    24. Lijia Shi & Lisa A. House & Zhifeng Gao, 2013. "Impact of Purchase Intentions on Full and Partial Bids in BDM Auctions: Willingness-to-pay for Organic and Local Blueberries," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 707-718, September.
    25. Alessandro Banterle & Stefanella Stranieri, 2013. "Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 1-17, December.

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