Consumers’ preferences for private health-related and public environmentally friendly food attributes: New insights from an ABR approach

Edi De Francesco, Maria Angela Perito, Irene Bozzolan, Gianluca Stefani and Leonardo Cei Cei

No 261258, 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: Paper explores Italian consumer appreciation for health-related and environmental friendly attributes of whole-wheat pasta and compares two approaches in the information provision: a “holistic” approach (inform consumer on the overall product characteristics) with an “attribute-specific” one. A modified version of the attribute-based referenda model (ABR) has been estimated on sequence of two dichotomous choice questions randomly administered to a sample of households, starting only with a one attribute version (“adding” treatment) or the complete product one (“subtracting”). Results suggest that taste and habits are great barriers to overcome, since only whole-wheat pasta consumers are willing to pay for the health-related attribute. It gets worse for the environmental attribute for which people are not willing to pay even if informed on the environmental-friendly method of production. However, the way in which information is provided, holistically or attribute-based, is important, with higher value attached to attributes when evaluated in the subtracting context, supporting prospect theory and endowment effect.

Keywords: Agribusiness; Consumer/Household Economics (search for similar items in EconPapers)
Date: 2017-07-31
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aiea17:261258

DOI: 10.22004/ag.econ.261258

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