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An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present

Published online by Cambridge University Press:  15 September 2016

John C. Bernard ,
Chao Zhang  and
Katie Gifford
John C. Bernard
Affiliation:
Department of Food and Resource Economics at the University of Delaware
Chao Zhang
Affiliation:
Department of Food and Resource Economics at the University of Delaware
Katie Gifford
Affiliation:
Department of Food and Resource Economics at the University of Delaware
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Abstract

This research compared bids that consumers placed on non genetically modified (GM), organic, and conventional versions of food products in order to determine if the organic market well serves those seeking to avoid GM foods. Auction experiments using potato chips, tortilla chips, and milk chocolate were conducted with 79 subjects. Bids were modeled as a function of consumer demographics using a heteroskedastic tobit regression model. Results with the non-GM attribute nested into the organic characteristic showed that the latter's marginal effects were insignificant. This suggested the potential to further develop non-GM products for consumers not willing to pay extra for the remaining organic attributes.

Keywords

auction experimentsGM foodsorganic foodswillingness to pay
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 35 , Issue 2 , October 2006 , pp. 374 - 385
Copyright
Copyright © 2006 Northeastern Agricultural and Resource Economics Association 

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