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An Experimental Approach To Estimating Willingess-Topay For Improvements In Food Safety

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  • Cao, Kay
  • Gibson, John
  • Scrimgeour, Frank G.

Abstract

This paper presents the results obtained from two experimental auctions regarding consumer willingness-to-pay (WTP) for food safety improvements. The research found a positive WTP for food safety. However WTP amounts are different when participants bid with objective risk information as compared with the naive (bid without this risk information. There appears to be no significant difference in WTP regarding different magnitudes of risk reduction.

Suggested Citation

  • Cao, Kay & Gibson, John & Scrimgeour, Frank G., 2005. "An Experimental Approach To Estimating Willingess-Topay For Improvements In Food Safety," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137802, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare05:137802
    DOI: 10.22004/ag.econ.137802
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    References listed on IDEAS

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    1. Shogren, Jason F. & Seung Y. Shin & Dermot J. Hayes & James B. Kliebenstein, 1994. "Resolving Differences in Willingness to Pay and Willingness to Accept," American Economic Review, American Economic Association, vol. 84(1), pages 255-270, March.
    2. David Dickinson & Jill Hobbs & DeeVon Bailey, 2003. "A Comparison of US and Canadian Consumers’ Willingness To Pay for Red-Meat Traceability," Working Papers 2003-06, Utah State University, Department of Economics.
    3. Hammitt, James K & Graham, John D, 1999. "Willingness to Pay for Health Protection: Inadequate Sensitivity to Probability?," Journal of Risk and Uncertainty, Springer, vol. 18(1), pages 33-62, April.
    4. Brown, Jennifer & Cranfield, John A.L. & Henson, Spencer J., 2003. "Misassessed Risk In Consumer Valuation Of Food Safety: An Experimental Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Fox, John A. & Shogren, J. & Hayes, Dermot J. & Kliebenstein, James, 1995. "Experimental Auctions to Measure Willingness to Pay for Food Safety," Staff General Research Papers Archive 5343, Iowa State University, Department of Economics.
    6. Stenger, Anne, 2000. "Experimental valuation of food safety: Application to sewage sludge," Food Policy, Elsevier, vol. 25(2), pages 211-218, April.
    7. Buzby, Jean C. & Fox, John A. & Ready, Richard C. & Crutchfleld, Stephen R., 1998. "Measuring Consumer Benefits of Food Safety Risk Reductions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 69-82, July.
    8. Kuchler, Fred & Golan, Elise H., 1999. "Assigning Values To Life: Comparing Methods For Valuing Health Risks," Agricultural Economic Reports 34037, United States Department of Agriculture, Economic Research Service.
    9. Spencer Henson, 1996. "Consumer Willingness To Pay For Reductions In The Risk Of Food Poisoning In The Uk," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 403-420, January.
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