Perceived subjective versus objective knowledge: Consumer valuation of genetically modified certification on food producing plants

Previous research has identified subjective and objective knowledge as determinants of consumers’ acceptance of genetically modified organisms (GMO) in the medical and food industries. In contrast to a large body of literature on the effects of attitudes or knowledge on food preferences, the extent to which consumers’ knowledge affects their valuation of non-GMO food producing plants (i.e., plants grown for food or ornamental purposes) is less understood. This manuscript investigates the relationship between consumers’ knowledge of relevant non-GMO certification programs and their acceptance and willingness-to-pay (WTP) for non-GMO plants. The first study used an Internet respondent panel and choice experiment, while the second study utilized an in-person experimental auction. In line with previously reported low public acceptance of genetically modified food products, respondents were receptive of and willing to pay premiums for non-GMO food producing plants. This study found that subjective and objective knowledge impacted the premiums for non-GMO labels, with the high subjective and low objective knowledge group generating the highest WTP. Low subjective and low objective knowledge resulted in the lowest WTP. Findings suggest a disconnect between subjective and objective knowledge of non-GMO certification programs, which in turn influences consumer valuation of those products.

Millennial university students’ valuation of traditional wine: Evidence from an experimental auction

This paper analyzes whether the perception of traditional wine brings value to millennials. Based on survey data and experimental auctions (165 participants), this study identifies the main factors affecting this consumer groups’ willingness to pay for traditional wine through a Tobit model methodology. The results suggest that millennials are willing to pay a higher price depending on demographic factors such as monthly disposable income, on wine involvement variables such as consumption frequency, and on nourishing and health aspects and product availability at points of sale, both of which are wine purchase decision criteria. The investigation has significant marketing and policy implications.

Estimating Demand for Third-party Quality Testing in Rural Grain Markets: Evidence from an Experimental Auction for Measuring Moisture Content in Kenya

Traders in informal grain markets often lack incentives to sell grain dried to a moisture level that is safe for storage, due to weak regulations and lack of low-cost moisture testing technologies. This study estimated the demand for a third-party moisture testing service in western Kenya that can encourage safe drying and reduce asymmetric information between buyers and sellers. We utilised a Becker–DeGroot–Marschak (BDM) auction to obtain maize traders’ willingness to pay (WTP) for the moisture testing service and compared it with two alternative multiple price list (MPL) mechanisms for eliciting WTP. Traders had the opportunity to bid on the testing service with two different moisture metres. The first was a low-cost hygrometer that measures temperature and relative humidity and costs about $2.50. The second was a commercial moisture metre that costs $170 in USA but provides a more precise reading. Results suggest that the standard BDM auction and both MPL variants produced similar estimates of demand for our moisture testing service. On average, traders were willing to pay $0.28 to have their maize tested with the hygrometer and $0.39 with the moisture metre. An additional take-it-or-leave-it auction for the hygrometer itself revealed that traders were not sensitive to price changes around market price, although only 15% of the traders purchased the device. A service provider model using either device could be a way to make moisture testing accessible in rural grain markets in the absence of a supply chain that sells these devices directly.

Consumers' assessment of labelled and packaged fresh potato: Evidence from Experimental Auctions

Worldwide, the potato is the third more important crop, coming after wheat and rice. In Argentina, it is the horticultural product with the highest consumption in fresh state, but Argentine consumers know little to nothing about potatoes attributes.The objective of this research is to identify the attributes that influence the assessment that consumers make of a potato with differentiated quality. Due to this, a Vickrey Second Price Experimental Auction took place in April 2017. The experiment involved 155 participants, who were students and employees of the School of Economic and Social Sciences of the National University of Mar del Plata. A Multiple Correspondence Analysis was applied based on the data of the bids and the survey carried out at the Auction.The main results showed that the participants, after receiving information about the culinary aptitude of the differentiated potato and its production method – its lower content of agrochemicals –, were willing to pay a higher price for the product. Additionally, participants opted for a higher price of potato when it was presented in a labelled package. Likewise, an identify group of participants were shown to be willing to pay more for this differentiated food.