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Willingness-to-Pay for Food Safety : An Experimental Investigation of Quality Certification on Bidding Behaviour

Author

Listed:
  • Anne Rozan

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Anne Stenger

    (ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts, INRA - Institut National de la Recherche Agronomique)

  • Marc Willinger

    (UM - Université de Montpellier)

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," Post-Print hal-00278981, HAL.
    • Handle: RePEc:hal:journl:hal-00278981
    DOI: 10.1093/erae/31.4.409
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