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Compensation Fees And Willingness To Pay: A Field Experiment On Organic Apples

Author

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  • Skuza, Nathan
  • McCracken, Vicki
  • Ellis, Joan

Abstract

An increasing number of studies suggest that compensation fees for participating in valuation studies can influence participant’s responses. This study investigates the impact that compensation has on individuals’ responses in a point -of-purchase setting, when the opportunity costs of participation are relatively small and participants are familiar with the products. We conducted a field experiment using the incentive compatible Becker-DegrootMarschak (BDM) mechanism to elicit consumers’ willingness-to-pay values for organically produced apples. Our results suggest that despite receiving similar information, compensated individuals tended to offer willingness-to-pay values that were significantly larger on average than those values offered by non- compensated individuals

Suggested Citation

  • Skuza, Nathan & McCracken, Vicki & Ellis, Joan, 2015. "Compensation Fees And Willingness To Pay: A Field Experiment On Organic Apples," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(3), pages 1-13, July.
    • Handle: RePEc:ags:ijfaec:208846
    DOI: 10.22004/ag.econ.208846
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    References listed on IDEAS

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    Cited by:

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    2. Senakpon, Kokoye, 2017. "Farmers’ Willingness To Pay For Soil Testing Service In Northern Haiti," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252804, Southern Agricultural Economics Association.
    3. A. Banerji & Shyamal Chowdhury & Hugo De Groote & J. V. Meenakshi & Joyce Haleegoah & Manfred Ewool, 2018. "Eliciting Willingness†to†Pay through Multiple Experimental Procedures: Evidence from Lab†in†the†Field in Rural Ghana," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(2), pages 231-254, June.
    4. Zhai, Qianqian & Kassas, Bachir & Zhao, Shuoli & Chen, Lijun & Chen, Chao, 2020. "Investigating Preference Inconsistencies in Incentive Structures that Account for House Money Effects," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304584, Agricultural and Applied Economics Association.

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