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Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

Published online by Cambridge University Press:  15 September 2016

Na He  and
John C. Bernard
Na He
Affiliation:
Retail Credit Management of HSBC North America in Mettawa, Illinois
John C. Bernard
Affiliation:
Department of Food and Resource Economics at the University of Delaware in Newark, Delaware
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Abstract

Auction experiments were used to examine demand and premium differences between organic, non-OM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-OM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet com and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.

Keywords

auction experimentswillingness to payorganicnon-GMfreshprocessed food
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 40 , Issue 2 , August 2011 , pp. 218 - 232
Copyright
Copyright © 2011 Northeastern Agricultural and Resource Economics Association 

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