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Accounting for Heterogeneity in Behavioral Responses to Health-Risk Information Treatments

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  • O. Ashton Morgan
  • John C. Whitehead
  • William L. Huth
  • Gregory S. Martin
  • Richard Sjolander

Abstract

Traditional revealed and stated preference (RP/SP) models consider a typical individual’s behavioral responses to various policy-based information treatments. For some costbenefit applications in which resource managers are concerned with responses from a representative individual, this is sufficient. However, as behavioral responses to information treatments can vary across respondents, we develop a latent class analysis to examine unobserved homogenous subgroup responses to health-risk information treatments. Results from a probabilistic model indicate that homogenous classes of consumers respond differently to the health-risk information treatments. This suggests that future policy-based research could benefit from examining potential heterogeneity in individuals’ responses to risk information treatments in order to fully understand the efficacy of treatments on behavior. Key Words: Food safety technology; health-risk information; latent class analysis; revealed preference; stated preference

Suggested Citation

  • O. Ashton Morgan & John C. Whitehead & William L. Huth & Gregory S. Martin & Richard Sjolander, 2013. "Accounting for Heterogeneity in Behavioral Responses to Health-Risk Information Treatments," Working Papers 13-05, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:13-05
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp1305.pdf
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    References listed on IDEAS

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    1. Parsons, George R. & Morgan, Ash & Whitehead, John C. & Haab, Timothy C., 2006. "The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 348-356, October.
    2. von Haefen, Roger H. & Phaneuf, Daniel J., 2008. "Identifying demand parameters in the presence of unobservables: A combined revealed and stated preference approach," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 19-32, July.
    3. Morgan, O. Ashton & Martin, Gregory S. & Huth, William L., 2009. "Oyster Demand Adjustments to Counter-Information and Source Treatments in Response to Vibrio vulnificus," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 683-696, December.
    4. Fox, John A & Hayes, Dermot J & Shogren, Jason F, 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Journal of Risk and Uncertainty, Springer, vol. 24(1), pages 75-95, January.
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    6. Mark E. Smith & Eileen O. van Ravenswaay & Stanley R. Thompson, 1988. "Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 513-520.
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    8. Whitehead, John C. & Haab, Timothy C. & Huang, Ju-Chin, 2000. "Measuring recreation benefits of quality improvements with revealed and stated behavior data," Resource and Energy Economics, Elsevier, vol. 22(4), pages 339-354, October.
    9. Egan, Kevin & Herriges, Joseph, 2006. "Multivariate count data regression models with individual panel data from an on-site sample," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 567-581, September.
    10. Haab, Timothy C. & Whitehead, John C. & Parsons, George R. & Price, Jammie, 2010. "Effects of information about invasive species on risk perception and seafood demand by gender and race," Resource and Energy Economics, Elsevier, vol. 32(4), pages 586-599, November.
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    12. George R. Parsons & Ash O. Morgan & John C. Whitehead & Timothy C. Haab, 2005. "The Welfare Effects of Pfiesteria-Related Fish Kills in Seafood Markets: A Contingent Behavior Analysis," Working Papers 05-01, Department of Economics, Appalachian State University.
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    1. Divide and conquer?
      by John Whitehead in Environmental Economics on 2015-12-07 15:15:14

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    1. William L. Huth & O. Ashton Morgan & John C. Whitehead, 2016. "Measuring the Impact of Improved Traceability Information in Seafood Markets Following a Large Scale Contamination Event," Working Papers 16-17, Department of Economics, Appalachian State University.

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    Keywords

    food safety technology; health-risk information; latent class analysis; revealed preference; stated preference;
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