Who would pay more for a fragrance-free laundry detergent? How health information affects valuation

Edina I. Findrik and Ulrich B. Morawetz

Applied Economics, 2019, vol. 51, issue 23, 2453-2467

Abstract: Fragrance allergy is a lifelong condition, and the probability of being affected increases with frequent exposure to fragrance. Currently, fragrance-free laundry detergents are not common in supermarkets. We used a contingent valuation among Austrian consumers in a within-respondent treatment to estimate how willingness to pay is influenced by health information. We found that higher income groups have a higher willingness to pay for fragrance-free detergents. Informing consumers about health impacts substantially increases this difference. Our simulation shows that lower-income groups benefit from health information only if low-priced fragrance-free detergents are available on the market.

Date: 2019
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DOI: 10.1080/00036846.2018.1545081

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