Community Supported Agriculture and Preferences for Risk and Fairness

Kévin Bernard, Aurélie Bonein () and Douadia Bougherara

No 234904, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: We aim to elicit consumers’ preferences for attributes of consumer supported agriculture (CSA) contracts and their determinants, especially risk and fairness preferences. We combine two incentivized field experiments with a stated choice survey. Risk preferences are structurally-elicited from several binary lottery choices and fairness preferences from a modified dictator game. We use a stated choice survey to determine consumers’ preferences for three attributes of CSA contracts: duration, loss in basket size due to production risks and price change. We face-to-face interviewed 162 CSA members. In line with fairness theory, we find consumers are averse to advantageous inequality (AI) toward CSA and non CSA farmers and averse to disadvantageous inequality (DI) toward non CSA farmers; but, we also find evidence of DI seeking toward CSA farmers. In the stated choice survey, we find consumers prefer longer contracts and that it is risk-driven rather than fairness-driven. As expected, consumers exhibit a dislike for losses and for share price increases. We find a high willingness to pay to avoid losses. High AI averse consumers tend to be less sensitive to losses. High DI seeking consumers tend to be less sensitive to losses and price increase.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 52
Date: 2016
New Economics Papers: this item is included in nep-agr, nep-cbe, nep-dcm, nep-exp and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/234904/files/A ... Paper-ID_%209219.pdf (application/pdf)

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:ags:aaea16:234904

DOI: 10.22004/ag.econ.234904

Access Statistics for this paper

More papers in 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().