Benefit evaluation of the country of origin labeling in Taiwan: Results from an auction experiment

Wen S. Chern and Chun-Yu Chang

Food Policy, 2012, vol. 37, issue 5, 511-519

Abstract: This research is aimed at investigating the consumer’s preference for food produced in Taiwan and the economic benefits for the country of origin labeling (COOL). The study used Vickrey second-price sealed-bid auction to elicit the consumer’s willingness to pay (WTP) for products under COOL. The study compared the bid functions estimated with Tobit model and the premium functions estimated with ordinary least squares (OLS). Due to price affiliation, it is more reliable to use the estimated premium functions. The estimated premiums are 67.5%, 84.7% and 99% for Taiwan products over their alternatives of China olives, China oolong tea, and Vietnam oolong tea, respectively. The study concludes that enacting and rigorously enforcing a COOL law would increase economic benefits to consumers in Taiwan, and at the same time, placing the imported products in the leveled playing field.

Keywords: Country of origin labeling (COOL); Experimental auction; Vickrey second price; Taiwan; China; Vietnam; Tea; Preserved olive (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306919212000450
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:37:y:2012:i:5:p:511-519

DOI: 10.1016/j.foodpol.2012.04.002

Access Statistics for this article

Food Policy is currently edited by J. Kydd

More articles in Food Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().