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Abstract
Auction experiments were used to investigate demand relationships and willingness to
pay (WTP) for four versions of potatoes and sweet corn—conventional, organic, and two
parts of organic: no pesticides and non-genetically modified (non-GM). Elasticities
showed strong and asymmetric substitute relationships between organic and its parts.
Combined premiums of the parts were not significantly different than the whole organic
premium, suggesting WTP for the attributes are not additive. A two-stage heteroskedastic
tobit model found significant WTP for each part dependent on demographics and beliefs
about conventional versions. Results suggest segments for parts of organic could be
established alongside the whole.