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Estimation of (Consumer) Sustainability Benefits from Horizontal Agreements: A Quasi Ex Post Analysis#

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  • Andy Bartels
  • Roman Inderst
  • Christoph Wentzien

Abstract

The European Commission’s new horizontal guidelines create scope for sustainability agreements and, to calculate efficiencies, suggest the estimation of consumers’ willingness to pay (WTP) for so-called “nonuse value.” We contrast estimates obtained from a hypothetical choice experiment conducted for the Netherlands’ competition authority (the “Chicken of Tomorrow” case) with estimates based on homescan data documenting consumers’ real choices between more or less animal-friendly meat, ensuring that the respective alternatives are made highly comparable. Still, the estimated WTP for the animal-friendly alternative is several times higher in the choice experiment. Given observed prices and the WTP estimated in the choice experiment, the animal-friendly alternative should have already crowded out the conventional variant. We use our findings to inform about several pitfalls both when using experimental data and when using data from true purchases.

Suggested Citation

  • Andy Bartels & Roman Inderst & Christoph Wentzien, 2024. "Estimation of (Consumer) Sustainability Benefits from Horizontal Agreements: A Quasi Ex Post Analysis#," Journal of Competition Law and Economics, Oxford University Press, vol. 20(3), pages 228-245.
    • Handle: RePEc:oup:jcomle:v:20:y:2024:i:3:p:228-245.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhae009
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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