AN EXPERIMENTAL APPROACH TO VALUING NEW DIFFERENTIATED PRODUCTS

Leigh Maynard, Jason G. Hartell, A. Lee Meyer and Jianqiang Hao

No 25810, 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa from International Association of Agricultural Economists

Abstract: An experimental store was created to evaluate initial demand for locally-produced and guaranteed tender steak products as a more realistic alternative to contingent valuation (CV) and dichotomous-choice experimental methods. Strengths of the approach are incentive compatibility, a realistic consumption set, and a familiar choice environment. Consumers selected among USDA Choice, premium quality, lean, guaranteed tender, and locally-produced strip steaks. A double-hurdle count data model indicated initial willingness-to-pay for locally-produced steak comparable to prior CV results, but demand was highly elastic. Demand for premium quality steak crowded out demand for the guaranteed tender product, contrasting with prior dichotomous-choice experimental results.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 32
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://ageconsearch.umn.edu/record/25810/files/cp03ma01.pdf (application/pdf)

Related works:
Journal Article: An experimental approach to valuing new differentiated products (2004)
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:iaae03:25810

DOI: 10.22004/ag.econ.25810

Access Statistics for this paper

More papers in 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().