WILLINGNESS TO PAY FOR NON-GENETICALLY MODIFIED FOOD: EVIDENCE OF HYPOTHETICAL BIAS FROM AN AUCTION EXPERIMENT IN JAPAN

This paper presents the results of experimental auctions of a genetically modified (GM) food that were conducted in Japan. A series of experimental auctions were conducted to elicit consumers' willingness to pay (WTP) for the selected non-genetically modified (non-GM) food along with WTP for its GM counterpart. The paper provides mean bidding prices for the non-GM and GM food products and analyzes the relationship between bidding prices and consumers' attitudinal and demographic variables. It also elicit hypothetical willingness to pay a premium for the non-GM product. Whereas auction experiments yield a premium of 30-40% of base price, a comparable hypothetical premium is nearly 90-100% of base price, which provides evidence of large hypothetical bias. Although it is impossible to claim that the experimental subjects are representative of the regional population, let alone the Japanese population, both qualitative and quantitative information gathered from the study is useful for anyone involved in the distribution of GM foods.


Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20305
Total Pages:
20
Note:
Replaced with revised version of paper 08/05/04.
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-10-20

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