Consumers' Resistance to Genetically Modified Foods: The Role of Information in an Uncertain Environment
Genetically modified (GM) foods have been engulfed in considerable controversy, and the early optimism has been dampened. Information issues--labeling and asymmetric information--are central to the GM-food debate. Furthermore, it is important to understand the reaction in developed countries to GM-foods because they set the tone of the world market in grains, oilseeds, and animal products. New results are reported from a statistical analysis of the market characteristics that push consumers in a high-income country to resist GM foods, with an emphasis on negative information from environmental groups and third-party, verifiable information, which could neutralize private information distributed by interested parties. A unique sample of adult consumers participated in laboratory auctions of three food products with randomized labeling and information treatments. A key finding is that GM information supplied by environmental groups increases the probability that consumers are out of the market for GM-foods. Third-party verifiable information, however, dissipates most of the negative effect of the environmental group perspective. Selective adoption of GM crops seems likely to raise world welfare but Western Europe's banning of GM imports and technology will largely affect them negatively.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||01 Jan 2004|
|Publication status:||Published in Journal of Agricultural & Food Industrial Organization 2004, vol. 2, Article 8, pp. 1-13|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shogren, Jason F. & Margolis, Michael & Koo, Cannon & List, John A., 2001.
"A random nth-price auction,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 46(4), pages 409-421, December.
- Cannon Koo & John List & Michael Margolis & Jason Shogren, 2001. "A random nth-price auction," Artefactual Field Experiments 00517, The Field Experiments Website.
- Rousu, Matthew & Huffman, Wallace & Shogren, Jason F. & Tegene, Abebayehu, 2002. "The Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food," Staff General Research Papers Archive 10009, Iowa State University, Department of Economics.
- Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters, in: The Economics of New Goods, pages 207-248 National Bureau of Economic Research, Inc.
- Hausman, J.A., 1994. "Valuation of New Goods Under Perfect and Imperfect Competition," Working papers 94-21, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jerry A. Hausman, 1994. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Working Papers 4970, National Bureau of Economic Research, Inc.
- Johnston, Robert J. & Roheim, Cathy A. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July. Full references (including those not matched with items on IDEAS)