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Valuing traceability of imported beef in Korea: an experimental auction approach

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  • Lee, Ji Yong
  • Han, Doo Bong
  • Nayga Jr, Rodolfo M.
  • Lim, Song-Soo

Abstract

The major objective of this study is to estimate Korean food shoppers’ willingness to pay (WTP) for imported beef with traceability. We use an experimental elicitation method, the random nth price auction, to identify consumers’ valuation for traceable imported beef. We also analyse the effect of different types of information on these valuations. Results indicate that consumers are generally willing to pay a 39 per cent premium for the traceable imported beef over similar beef without traceability. Results also suggest that in contrast to the insignificant effect of positive information, negative and two-sided information about traceability significantly reduces WTP.

Suggested Citation

  • Lee, Ji Yong & Han, Doo Bong & Nayga Jr, Rodolfo M. & Lim, Song-Soo, 2011. "Valuing traceability of imported beef in Korea: an experimental auction approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-14, September.
    • Handle: RePEc:ags:aareaj:186963
    DOI: 10.22004/ag.econ.186963
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    1. Caputo, Vincenzina, 2020. "Does information on food safety affect consumers’ acceptance of new food technologies? The case of irradiated beef in South Korea under a new labelling system and across different information regimes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    2. Lee, Sang Hyeon & Lee, Ji Yong & Han, Doo Bong & Nayga, Rodolfo M. Jr., 2014. "Assessing Korean Consumers' Valuation for BSE-Tested and Country of Origin Labeled Beef Products," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 37(3), pages 1-21.
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    4. Yan, Zhen & Yu, Xiaohua & Zhou, Jiehong, 2016. "Measure consumer preferences for pork attributes under different media coverage in China," GlobalFood Discussion Papers 232028, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Yan, Zhen & Zhou, Jie-hong & Li, Kai, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205599, Agricultural and Applied Economics Association.
    6. Higgins, Kieran & Hutchinson, W. George & Longo, Alberto, 2020. "Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    7. Han, Doo Bong & Nayga, Rodolfo M., Jr. & Lee, Ji Yong & Yoon, Jong Min, 2012. "Assessing Korean Consumers’ Valuation for Domestic and Imported Rice: Importance of Country of Origin and Food Miles Information," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119817, Southern Agricultural Economics Association.
    8. Yan, Zhen & Zhou, Jie-hong, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China," 2015 Conference, August 9-14, 2015, Milan, Italy 211884, International Association of Agricultural Economists.
    9. Young Woon Choi & Ji Yong Lee & Doo Bong Han & Rodolfo M. Nayga, 2018. "Consumers’ Valuation of Rice‐Grade Labeling," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 511-531, September.
    10. Lee, Ji Yong & Fox, John A., 2016. "The effects of allowing substitutes on bidding behavior in a private value experimental auction," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235900, Agricultural and Applied Economics Association.
    11. Linhai Wu & Xiaolin Liu & Dian Zhu & Hongsha Wang & Shuxian Wang & Lingling Xu, 2015. "Simulation of Market Demand for Traceable Pork with Different Levels of Safety Information: A Case Study in Chinese Consumers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 513-537, December.
    12. Seyoum, Bruk Tefera & Adam, Brian D. & Ge, Candi, 2013. "The Value of Genetic Information in a Whole-Chain Traceability System for Beef," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150458, Agricultural and Applied Economics Association.
    13. Linhai Wu & Hongsha Wang & Dian Zhu & Wuyang Hu & Shuxian Wang, 2016. "Chinese consumers’ willingness to pay for pork traceability information—the case of Wuxi," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 71-79, January.
    14. Zheng, Qiujie & Wang, H. Holly, 2016. "Chinese preferences for sustainable attributes for food away from home: A rank-ordered model," China Economic Review, Elsevier, vol. 41(C), pages 148-158.
    15. Yan, Zhen & Zhou, Jie-hong, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China," 2015 Conference, August 9-14, 2015, Milan, Italy 212609, International Association of Agricultural Economists.
    16. Jeff Luckstead & Heather A. Snell & Lawton Lanier Nalley & Rodolfo M. Nayga & Joshua Sarpaning, 2022. "A multi‐country study on consumers' valuation for child‐labor‐free chocolate: Implications for child labor in cocoa production," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 1021-1048, June.
    17. Yang, Shang-Ho & Souza Monteiro, Diogo, 2016. "What’s in a Price? The Impact of Starting Point Bias in WTP for Information in Taiwanese Wet Markets," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235766, Agricultural and Applied Economics Association.
    18. Liu, Ruifeng & ,, 2021. "What We Can Learn from the Interactions of Food Traceable Attributes? a Case Study of Fuji Apple in China," 2021 Conference, August 17-31, 2021, Virtual 315916, International Association of Agricultural Economists.
    19. My, Nguyen H.D. & Demont, Matty & Van Loo, Ellen J. & de Guia, Annalyn & Rutsaert, Pieter & Tuan, Tran Huu & Verbeke, Wim, 2018. "What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam," Food Policy, Elsevier, vol. 79(C), pages 283-296.
    20. Yingqi Zhong & Linhai Wu & Xiujuan Chen & Zuhui Huang & Wuyang Hu, 2018. "Effects of Food-Additive-Information on Consumers’ Willingness to Accept Food with Additives," IJERPH, MDPI, vol. 15(11), pages 1-17, October.
    21. Wang, Erpeng & Gao, Zhifeng & Heng, Yan & Shi, Lijia, 2019. "Chinese consumers’ preferences for food quality test/measurement indicators and cues of milk powder: A case of Zhengzhou, China," Food Policy, Elsevier, vol. 89(C).
    22. Azucena GRACIA & Tiziana DE-MAGISTRIS, 2015. "The role of participants' competitiveness in consumers' valuation for food products using experimental auctions," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 484-491.

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