Willingness to Pay for PEF-processed Orange Juice: Evidence from an Auction Experiment

Wen S. Chern, Naoya Kaneko and Gulay Babadogan Tarakcioglu

No 21897, 2003 Annual meeting, July 27-30, Montreal, Canada from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper presents the results of experimental auctions of the orange juice processed with the pulsed electric field (PEF) technology. A series of experimental auctions are conducted to elicit consumers' willingness to pay (WTP) for the PEF orange juice along with WTP for three other types of orange juice: unprocessed (fresh), thermally processed not-from-concentrate, and thermally processed from-concentrate orange juice. We adopt the second-price sealed-bid auction. With this auction method, the highest bidder claims the product at the price equal to the second highest bid. The auction results show that unprocessed "fresh" juice had the highest mean bidding price of $2.68/half gallon. The second-highest mean bidding price was for PEF juice at $2.48/half gallon; the third-highest was for not-from-concentrate juice at $1.95/half gallon; and the lowest was for concentrate juice at $1.31/half gallon. The bids were affected by product tasting. The mean bidding price for PEF juice dropped by nearly 17% after tasting.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 25
Date: 2003
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea03:21897

DOI: 10.22004/ag.econ.21897

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