Consumers’ preferences for private health-related and public environmentally friendly food attributes: New insights from an ABR approach

Paper explores Italian consumer appreciation for health-related and environmental friendly attributes of whole-wheat pasta and compares two approaches in the information provision: a “holistic” approach (inform consumer on the overall product characteristics) with an “attribute-specific” one. A modified version of the attribute-based referenda model (ABR) has been estimated on sequence of two dichotomous choice questions randomly administered to a sample of households, starting only with a one attribute version (“adding” treatment) or the complete product one (“subtracting”). Results suggest that taste and habits are great barriers to overcome, since only whole-wheat pasta consumers are willing to pay for the health-related attribute. It gets worse for the environmental attribute for which people are not willing to pay even if informed on the environmental-friendly method of production. However, the way in which information is provided, holistically or attribute-based, is important, with higher value attached to attributes when evaluated in the subtracting context, supporting prospect theory and endowment effect.

Issue Date:
Jul 31 2017
Publication Type:
Conference Paper/ Presentation
JEL Codes:

 Record created 2017-08-03, last modified 2018-01-23

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