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A Rose by Another Name: An Objective Analysis of an Established Market for Credence Attributes

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  • Galloway, Kristin
  • Bailey, DeeVon

Abstract

A second-price Vickrey-style auction is used to determine the willingness to pay (WTP) for credence attributes found in "cause" coffees. WTP estimates were then compared with actual market price information. The results indicate positive average bids for the cause coffees. However, premiums were found for fair-trade and shade-grown coffee in the actual price data and discounts for organic and sustainable coffee.

Suggested Citation

  • Galloway, Kristin & Bailey, DeeVon, 2005. "A Rose by Another Name: An Objective Analysis of an Established Market for Credence Attributes," 2005 Annual meeting, July 24-27, Providence, RI 19493, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19493
    DOI: 10.22004/ag.econ.19493
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