EFFECTS AND VALUE OF VERIFIABLE INFORMATION IN A CONTROVERSIAL MARKET: EVIDENCE FROM LAB AUCTIONS OF GENETICALLY MODIFIED FOOD

By CostBenefit on Feb 11, 2007 | In General, U.S., Academic Study/Journal Article, Agriculture, Forestry and Food, Contingent Valuation, Surveys,.., Environmental Economics / Ecological Economics, Costs and Benefits

Link: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7295.2007.00017.x

Abstract: Food products containing genetically modified (GM) ingredients have entered the market over the past decade. The biotech industry and environmental groups have disseminated conflicting private information about GM foods. This paper develops a unique methodology for valuing independent third-party information in such a setting and applies this method to consumers' willingness to pay for food products that might be GM. Data are collected from real consumers in an auction market setting with randomized information and labeling treatments. The average value of third-party information per lab participant is small, but the public good value across U.S. consumers is shown to be quite large.

by MATTHEW ROUSU 1, WALLACE E. HUFFMAN 2, JASON F. SHOGREN 3, ABEBAYEHU TEGENE 4
1. Assistant Professor, Susquehanna University, 514 University Avenue, Selinsgrove, PA 17870. Phone 570-372-4186, Fax 570-372-2870, E-mail rousu@susqu.edu*
2. Charles F. Curtiss Distinguished Professor, Department of Economics, Iowa State University, Ames, IA 50011. Phone 515-294-6359, Fax 515-294-0221, E-mail whuffman@iastate.edu
3. Stroock Distinguished Professor of Natural Resource Conservation and Management, Department of Economics and Finance, University of Wyoming, Laramie, WY 82070. Phone 307-766-5430, Fax 307-766-5090, E-mail Jramses@uwyo.edu
4. Branch Chief, Food Economics Division, ERS, U.S. Department of Agriculture, Washington DC 20036. Phone 202-694-5527, Fax 202-694-5611, E-mail ategene@ers.usda.gov

Economic Inquiry via Blackwell Publishing www.blackwell-synergy.com
Online Early
doi:10.1111/j.1465-7295.2007.00017.x
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7295.2007.00017.x

« Urban environmental health and sensitive populations: How much are the Italians willing to pay to reduce their risks?A Comparison of Household Recycling Behaviors in Norway and the United States »