Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food

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

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: Food products containing genetically modified (GM) ingredients have entered the market over the past decade. The biotech industry and environmental groups have disseminating conflicting private information about GM foods. This paper develops a unique methodology for valuing independent third-party information in such a setting and applies this method to consumers’ willingness to pay for food products that might be GM. Data are collected from real consumers in an auction market setting with randomized information and labeling treatments. The average value of third-party information per lab participant is small, but the public good value across U.S. consumers is shown to be quite large.

JEL-codes: C9 D1 D8 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-cbe
Date: 2006-11-29
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Published in Economic Inquiry, July 2007, Vol. 45, No. 3, pp. 409-432.

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Journal Article: EFFECTS AND VALUE OF VERIFIABLE INFORMATION IN A CONTROVERSIAL MARKET: EVIDENCE FROM LAB AUCTIONS OF GENETICALLY MODIFIED FOOD (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:12702

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