Consumers' Willingness to Pay for Bioplastic Plant Containers: An Experimental Auction Approach

Brenna Ellison, Barrett Kirwan and Atul Nepal

No 205670, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: This study elicites consumers' willingness to pay for an environmentally sustainable good that might not typically be purchased on its own. We isolate the value of these perfectly-complementary, auxiliary goods by endowing consumers with the complete good and giving them the opportunity to pay to upgrade the auxiliary component of the good. We employ a Becker-Degroot-Marschack auction design in a market setting to determine consumers' actual willingness to pay for the auxiliary good. We find consumers are willing to pay a $0.67--$1.12 premium for a bioplastic plant container over a traditional plastic one.

Keywords: Agribusiness; Demand and Price Analysis; Marketing; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 12
Date: 2015-05-27
New Economics Papers: this item is included in nep-exp and nep-mkt
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205670

DOI: 10.22004/ag.econ.205670

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