Welfare Gain of Rice Grading Information

Doo Bong Han (han@korea.ac.kr), Ji Yong Lee and Sang Hyeon Lee (kutamu@gmail.com)
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Doo Bong Han: Korea University
Ji Yong Lee: University of Arkansas

2018 Stata Conference from Stata Users Group

Abstract: This study examines consumers' value of rice-grade labeling information to identify the effectiveness of the new mandatory rice grading policy in October 2018. This study measures consumers¡¯ premiums for ¡°super¡±, ¡°good¡±, and ¡°normal¡± grades before and after providing grade labeling information using a non-hypothetical random nth experimental auction. We then estimate consumers¡¯ value of grade labeling information by comparing with market premiums. The results suggest that consumers value the provision of grade labeling information, with the highest value for the ¡°super¡± grade. Given the grade labeling information, the additional detailed information about grade labeling does not affect consumers¡¯ rice purchasing behaviors. The findings suggest that the rice-grading information is the important factor differentiating domestic rice from imported rice, and it also provides consumers credible information on rice quality to make better purchasing decisions.

Date: 2018-08-02
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Persistent link: https://EconPapers.repec.org/RePEc:boc:scon18:79

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