Effects of Information on Consumers' Willingness to Pay for GM-Corn-Fed Beef

Journal of Agricultural & Food Industrial Organization 02/2007; 2(2):1058-1058. DOI: 10.2202/1542-0485.1058
Source: RePEc


There has been growing public opposition against genetically modified (GM) foods. Using a dichotomous choice contingent valuation methodology, we analyze the factors that affect the willingness to pay for GM-corn-fed beef by consumers in Spokane, Washington. The mean discount required to choose the GM-fed beef is small at 8% compared to other studies in Europe and Japan. Further, half the sample was provided information about biotechnology, and the effect of this information is analyzed.

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Available from: Thomas I. Wahl
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    • "Examining the Italian yogurt market, Bonanno (2012) finds that the profitability of functional yogurt is, on average, larger compared to the conventional counterparts. Information about a functional product can influence the attitude and perception toward new food technology and functional products (Anand et al., 2007; Cox et al., 2008; Cranfield et al., 2011; Depositario et al., 2009; Hu et al., 2006; Li et al., 2004; Nayga et al., 2004). There is empirical evidence on how consumers respond to information provided about functional food product. "
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    ABSTRACT: Food markets in developing countries are experiencing an expansion of new functional products. Even though their market share is small, these food products are usually imported and post a higher price compared to local products. In this article, we investigate the consumer response toward new functional food products in Uzbekistan by focusing on the incorporation of apples enriched with antioxidant coating in the food market. We conduct consumer surveys with two different information treatments. We utilize a dichotomous‐choice contingent valuation methodology to estimate willingness to pay for this product and analyze factors that affect consumer choice. The results suggest that the average Uzbek respondent is willing to purchase functional apples with a 6% discount. The effect of information regarding the potential health benefits of antioxidants is positive and statistically significant. We compare the findings with a previous U.S. study of the same product and discuss how the delivery method provides an additional hurdle in the Uzbek market.
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    • "The possibility of estimation bias due to protesters, however, did not receive much attention in the studies of Li et al. (2004) and Kaneko and Chern (2005). Kaneko and Chern asserted that the study of WTP should focus on the " optimizers, " i.e., those consumers who would change their choice when they faced a substantial price markdown. "
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    ABSTRACT: This study provides an appropriate analytical approach using stated preference analysis and the contingent valuation method to investigate consumers’ willingness to pay a premium for genetically modified (GM) foods together with their prior purchase intentions. Although most analyses treat consumers’ attitudes and willingness to pay as separate issues, we introduce the idea of prior purchase intention to analyze these two issues as a whole. To achieve this purpose, a modeling technique invoking the multinomial logistic model and the accelerated failure time model is presented. Based on the data collected from an essential double-bounded design, our empirical results suggest that Taiwanese consumers are willing to pay a premium of about 11 NT dollars (7% of the given average market price of 150 NT dollars for the non-GM salmon) to avoid GM-soybean-fed salmon. In addition, the results of this study provide evidence that our stated-preference double-bounded design has a better-off statistical efficiency than the single-bounded one.
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    • "This could be a partial explanation to the relatively high bids in our experiment and should be addressed in future value elicitation research on GM biofortified crops. Future auction research can improve and validate our results in several ways, e.g. by exploring how these poor, low educated consumers react to another auction mechanism, such as the Becker– Degroot–Marschalk approach, which is also deemed appropriate in poor, rural areas (De Groote et al., 2011), by investigating the influence of (the order of) specific GM information treatments (Depositario et al., 2009a) additional outside options (Cherry, Frykblom , Shogren, List, & Sullivan, 2004) or a consumption requirement of the purchased product (Corrigan & Rousu, 2006), or by incorporating indirect valuation tools to control for potential social desirability bias (Lusk & Norwood, 2006). Regarding the target group, future research is needed to measure how much rice farmers' are willing to pay for FBR seeds among other seeds, in order to investigate the potential demand on the supply side. "
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