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Estimating the Optimal Premium Rates for Credential Food Attributes: A Case Study in the Northeast United States

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  • Li, Minghao
  • Wang, Qingbin
  • Kolodinsky, Jane M.

Abstract

Using data from the 2010 Taste of Place survey conducted in Vermont and three metropolitan areas in the northeast United States, this study examines consumer willingness to pay (WTP), estimates price elasticity, and calculates the optimal premium rates for selected credence food attributes. The empirical results indicate that respondents’ WTP varies significantly across attributes and is closely associated with certain demographic factors. The estimated optimal premium rates and estimation procedures presented in this paper can help producers and retailers identify the optimal premium rates for each attribute in association with geographical or socioeconomic segments of consumers.

Suggested Citation

  • Li, Minghao & Wang, Qingbin & Kolodinsky, Jane M., 2012. "Estimating the Optimal Premium Rates for Credential Food Attributes: A Case Study in the Northeast United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-13.
    • Handle: RePEc:ags:jlofdr:145329
    DOI: 10.22004/ag.econ.145329
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    References listed on IDEAS

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    Cited by:

    1. Jennifer Porter & David Conner & Jane Kolodinsky & Amy Trubek, 2017. "Get real: an analysis of student preference for real food," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(4), pages 921-932, December.

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