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Are U.S. Consumers Tolerant of GM Foods?

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Listed:
  • Rousu, Matthew
  • Huffman, Wallace
  • Shogren, Jason F.
  • Tegene, Abebayehu

Abstract

Genetically modified (GM) foods have caused many controversies. One important controversy relates to tolerance?the impurity rate that is tolerated before a commodity must be labeled as genetically modified. Currently, the United States does not have a specific tolerance or threshold level for GM foods. This paper uses experimental auctions to determine consumers? acceptance of non-GM foods with zero, 1 percent, and 5 percent tolerance for genetically modified material. Our results indicate that consumers would pay less for food that tolerates GM material, but the discount is not significantly different for foods with 1-percent and 5-percent GM content. Key words: genetically modified (GM) foods, contamination thresholds, laboratory auctions, nth-price auction, vegetable oil, tortilla chips, russet potatoes

Suggested Citation

  • Rousu, Matthew & Huffman, Wallace & Shogren, Jason F. & Tegene, Abebayehu, 2002. "Are U.S. Consumers Tolerant of GM Foods?," Staff General Research Papers Archive 10050, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:10050
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    Cited by:

    1. D Rigby & M Burton, 2003. "Modeling Indifference and Dislike: A Bounded Bayesian Mixed Logit Model of the UK Market for GM Food," The School of Economics Discussion Paper Series 0327, Economics, The University of Manchester.
    2. Wachenheim, Cheryl J. & Vanwechel, Tamara, 2004. "The Influence Of Environmental-Impact Information On Consumer Willingness To Pay For Products Labeled As Free Of Genetically Modified Ingredients," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-13, July.

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