COMPENSATION FEES AND WILLINGNESS TO PAY: A FIELD EXPERIMENT ON ORGANIC APPLES

Nathan Skuza, Vicki McCracken and Joan Ellis

International Journal of Food and Agricultural Economics (IJFAEC), 2015, vol. 03, issue 3, 13

Abstract: An increasing number of studies suggest that compensation fees for participating in valuation studies can influence participant’s responses. This study investigates the impact that compensation has on individuals’ responses in a point -of-purchase setting, when the opportunity costs of participation are relatively small and participants are familiar with the products. We conducted a field experiment using the incentive compatible Becker-DegrootMarschak (BDM) mechanism to elicit consumers’ willingness-to-pay values for organically produced apples. Our results suggest that despite receiving similar information, compensated individuals tended to offer willingness-to-pay values that were significantly larger on average than those values offered by non- compensated individuals

Keywords: Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:208846

DOI: 10.22004/ag.econ.208846

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