THE EFFECTS OF INFORMATION ON CONSUMER DEMAND FOR BIOTECH FOODS: EVIDENCE FROM EXPERIMENTAL AUCTIONS

Abebayehu Tegene, Wallace E. Huffman, Matthew C Rousu () and Jason Shogren ()

No 33577, Technical Bulletins from United States Department of Agriculture, Economic Research Service

Abstract: Consumers' willingness to pay for food products decreases when the food label indicates that a food product is produced with the aid of modern biotechnology. This bulletin presents empirical evidence on consumers' willingness to pay for biotech foods based on the presence or absence of labels advising that the food was prepared with the aid of biotechnology. The authors designed and conducted an experimental auction to elicit consumers'willingness to pay for "genetically modified" (GM)-labeled and standard-labeled foods under different information regimes. The evidence gathered for vegetable oil, tortilla chips, and potatoes shows that labels matter. In particular, under all information treatments, consumers discounted food items labeled "GM" by an average of 14 percent. While gender, income, and other demographic characteristics appeared to have only a slight impact on consumers' willingness to pay for biotech foods, information from interested parties and third-party (independent) sources was found to have a strong impact.

Keywords: Biotech; bioengineering; biotechnology; food labels; auctions; experimental economics; random nth price; willingness to pay; Demand and Price Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: Written
View citations in EconPapers

Downloads: (external link)
http://purl.umn.edu/33577 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:uerstb:33577

Access Statistics for this paper

More papers in Technical Bulletins from United States Department of Agriculture, Economic Research Service
Contact information at EDIRC.
Series data maintained by AgEcon Search ().