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Using Elicitation Mechanisms to Estimate the Demand for Nutritious Maize: Evidence from Experiments in Rural Ghana

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  • Banerji, Abhijit
  • Chowdhury, Shyamal
  • Groote, Hugo
  • Meenakshi, J.V.
  • Haleegoah, Joyce
  • Ewool, Manfred

Abstract

We conduct a field experiment in Ghana to assess (a) consumers’ willingness to pay (WTP) for a provitamin A maize variety, (b) the performance of three elicitation mechanisms (Becker-DeGroot-Marschak [BDM] mechanism, kth price auction, and choice experiment) in eliciting WTP, (c) the effect of participation fees on WTP and (d) the effect of nutrition information on WTP. WTP results are similar in magnitude across the three elicitation mechanisms. Variation in participation fee has no effect on estimated WTP in the two mechanisms that varied participation fee, suggesting that people did not have a higher propensity to spend out of windfall income. In the absence of information on the nutrient density of the provitamin A maize variety, consumers are willing to pay less for it than the existing varieties; however, nutrition information transforms this discount into a substantial premium.

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  • Banerji, Abhijit & Chowdhury, Shyamal & Groote, Hugo & Meenakshi, J.V. & Haleegoah, Joyce & Ewool, Manfred, 2015. "Using Elicitation Mechanisms to Estimate the Demand for Nutritious Maize: Evidence from Experiments in Rural Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 211349, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211349
    DOI: 10.22004/ag.econ.211349
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    3. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2022. "Trouble with zero: The limits of subsidizing technology adoption," Journal of Development Economics, Elsevier, vol. 158(C).
    4. Hugo Groote & Clare Narrod & Simon C. Kimenju & Charles Bett & Rosemarie P. B. Scott & Marites M. Tiongco & Zachary M. Gitonga, 2016. "Measuring rural consumers’ willingness to pay for quality labels using experimental auctions: the case of aflatoxin-free maize in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 33-45, January.
    5. Salomón Pérez & Adewale Oparinde & Ekin Birol & Carolina Gonzalez & Manfred Zeller, 2018. "Consumer acceptance of an iron bean variety in Northwest Guatemala: the role of information and repeated messaging," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-23, December.
    6. Herrington, Caitlin L. & Maredia, Mywish & Ortega, David L. & Taleon, Victor & Birol, Ekin & Sarkar, Abdur Rouf & Rahaman, Shajedur, 2021. "Rural Bangladeshi Consumers' Willingness to Pay for Rice with Improved Nutrition via Zinc Biofortified Rice and Decreased Milling Practices," 2021 Conference, August 17-31, 2021, Virtual 315079, International Association of Agricultural Economists.
    7. Cole, Shawn & Fernando, A. Nilesh & Stein, Daniel & Tobacman, Jeremy, 2020. "Field comparisons of incentive-compatible preference elicitation techniques," Journal of Economic Behavior & Organization, Elsevier, vol. 172(C), pages 33-56.
    8. Abedullah, A. & Kouser, S. & Ibrahim, M., 2018. "Consumer preferences and willingness to pay for Aflatoxin- Free Milk in Pakistan," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275957, International Association of Agricultural Economists.
    9. Su, Lianfan & Adam, Brian D. & Lusk, Jayson L. & Arthur, Frank, 2017. "Anchoring, Information, and Fragility of Choice Experiments: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    10. Nazli, Hina & Birol, Ekin & Asare-Marfo, Dorene & Tariq, Asjad, 2015. "Wheat Farmers' Preferences for Wheat Traits in Punjab, Pakistan: A Choice Experiment Approach," 2015 Conference, August 9-14, 2015, Milan, Italy 211352, International Association of Agricultural Economists.
    11. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2020. "Subsidizing Agricultural Technology Adoption: An Experimental and Behavioral Economics Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304451, Agricultural and Applied Economics Association.
    12. Banerji, Abhijit & Birol, Ekin & Karandikar, Bhushana & Rampal, Jeevant, 2016. "Information, branding, certification, and consumer willingness to pay for high-iron pearl millet: Evidence from experimental auctions in Maharashtra, India," Food Policy, Elsevier, vol. 62(C), pages 133-141.

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    More about this item

    Keywords

    Crop Production/Industries; Food Consumption/Nutrition/Food Safety;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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