WILLINGNESS TO PAY FOR NON-GENETICALLY MODIFIED FOOD: EVIDENCE OF HYPOTHETICAL BIAS FROM AN AUCTION EXPERIMENT IN JAPAN
Naoya Kaneko and
Wen S. Chern
No 20305, 2004 Annual meeting, August 1-4, Denver, CO from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)
This paper presents the results of experimental auctions of a genetically modified (GM) food that were conducted in Japan. A series of experimental auctions were conducted to elicit consumers' willingness to pay (WTP) for the selected non-genetically modified (non-GM) food along with WTP for its GM counterpart. The paper provides mean bidding prices for the non-GM and GM food products and analyzes the relationship between bidding prices and consumers' attitudinal and demographic variables. It also elicit hypothetical willingness to pay a premium for the non-GM product. Whereas auction experiments yield a premium of 30-40% of base price, a comparable hypothetical premium is nearly 90-100% of base price, which provides evidence of large hypothetical bias. Although it is impossible to claim that the experimental subjects are representative of the regional population, let alone the Japanese population, both qualitative and quantitative information gathered from the study is useful for anyone involved in the distribution of GM foods.
Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea04:20305
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