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Local, Organic, Conventional— Asymmetric Effects of Information and Taste on Label Preferences in an Experimental Auction

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  • Costanigro, Marco
  • Kroll, Stephan
  • Thilmany, Dawn D.

Abstract

We endowed consumers with conventional apples and auctioned local, organic and organic-local apples to elicit consumers’ valuation and the response to two experimental treatments: scientific information and taste. For both labels, which participants valued as partial substitutes, positive WTP is conditional on distrusting the governmental food agencies. Information documenting the inconclusive scientific evidence in favor of organic and local production has little effect; while participants with positive valuation reacted to organoleptic characteristics only when the new information favored the labeled apples. The observed behavior is more consistent with polarization against conventional products, rather than in favor of local and organic.

Suggested Citation

  • Costanigro, Marco & Kroll, Stephan & Thilmany, Dawn D., 2012. "Local, Organic, Conventional— Asymmetric Effects of Information and Taste on Label Preferences in an Experimental Auction," 2012 AAEA/EAAE Food Environment Symposium 123199, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaeafe:123199
    DOI: 10.22004/ag.econ.123199
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    1. Ay, Jean-Sauveur & Chakir, Raja & Marette, Stephan, 2014. "Does living close to a vineyard increase the willingness-to-pay for organic and local wine?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183075, European Association of Agricultural Economists.
    2. Mosier, Samantha L. & Thilmany, Dawn, 2016. "Diffusion of food policy in the U.S.: The case of organic certification," Food Policy, Elsevier, vol. 61(C), pages 80-91.
    3. Kathryn Boys & David Willis & Carlos Carpio, 2014. "Consumer willingness to pay for organic and locally grown produce on Dominica: insights into the potential for an “Organic Island”," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 595-617, June.
    4. Jean-Sauveur Ay & Raja Chakir & Stephan Marette, 2017. "Distance Decay in the Willingness to Pay for Wine: Disentangling Local and Organic Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 997-1019, December.
    5. Todd M. Schmit & Bradley J. Rickard & John Taber, 2013. "Consumer Valuation of Environmentally Friendly Production Practices in Wines, considering Asymmetric Information and Sensory Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 483-504, June.
    6. Ribeiro, Jose Eduardo & Gschwandtner, Adelina & Revoredo-Giha, Cesar, 2021. "Estimation of a Hedonic Price Equation for Chicken Meat in the UK: Does the Organic Attribute Matter?," 2021 Conference, August 17-31, 2021, Virtual 314942, International Association of Agricultural Economists.
    7. Biguzzi, Coralie & Ginon, Emilie & Gomez-y-Paloma, Sergio & Langrell, Sergio & Lefebvre, Marianne & Marette, Stephan & Mateu, Guillermo & Sutan, Angela, 2014. "Consumers' preferences for Integrated Pest Management: Experimental insights," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183081, European Association of Agricultural Economists.
    8. Eva Tebbe & Korbinian von Blanckenburg, 2018. "Does willingness to pay increase with the number and strictness of sustainability labels?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 41-53, January.
    9. Adelina Gschwandtner & Jose Eduardo Ribeiro & Cesar Revoredo-Giha & Michael Burton, 2021. "Combining Stated and Revealed Preferences for valuing Organic Chicken Meat," Studies in Economics 2113, School of Economics, University of Kent.

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    Food Consumption/Nutrition/Food Safety;

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