Abstract
Experimental auctions are normally conducted using single-unit auctions. In this paper, we use the multiunit Vickrey auction to assess the determinants of consumers' willingness to pay (WTP) for organic milk in a multiunit shopping scenario. We also analyze the effect of positive and negative information about organic farming on WTP. Our results suggest that consumers are willing to pay a premium for organic milk but that this WTP decreases with the number of units purchased. Results also suggest that health issues, high price of organic foods, taste, and lack of information on organic foods are factors that influence WTP for organic milk. The type of information provided also plays a relevant role. Specifically, we found that subjects' WTP responds positively to positive information about organic farming and responds negatively to negative information. The provision of both positive and negative information does not affect WTP.
| Original language | English |
|---|---|
| Pages (from-to) | 469-494 |
| Number of pages | 26 |
| Journal | Canadian Journal of Agricultural Economics |
| Volume | 60 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2012 Dec 1 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Agronomy and Crop Science
- Animal Science and Zoology
- Economics and Econometrics
- Ecology
- Global and Planetary Change
Cite this
Assessing Consumers' Willingness to Pay for Different Units of Organic Milk : Evidence from Multiunit Auctions. / Akaichi, Faical; Nayga, Jr, Rodolfo M.; Gil, José M.
In: Canadian Journal of Agricultural Economics, Vol. 60, No. 4, 01.12.2012, p. 469-494.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Assessing Consumers' Willingness to Pay for Different Units of Organic Milk
T2 - Evidence from Multiunit Auctions
AU - Akaichi, Faical
AU - Nayga, Jr, Rodolfo M.
AU - Gil, José M.
PY - 2012/12/1
Y1 - 2012/12/1
N2 - Experimental auctions are normally conducted using single-unit auctions. In this paper, we use the multiunit Vickrey auction to assess the determinants of consumers' willingness to pay (WTP) for organic milk in a multiunit shopping scenario. We also analyze the effect of positive and negative information about organic farming on WTP. Our results suggest that consumers are willing to pay a premium for organic milk but that this WTP decreases with the number of units purchased. Results also suggest that health issues, high price of organic foods, taste, and lack of information on organic foods are factors that influence WTP for organic milk. The type of information provided also plays a relevant role. Specifically, we found that subjects' WTP responds positively to positive information about organic farming and responds negatively to negative information. The provision of both positive and negative information does not affect WTP.
AB - Experimental auctions are normally conducted using single-unit auctions. In this paper, we use the multiunit Vickrey auction to assess the determinants of consumers' willingness to pay (WTP) for organic milk in a multiunit shopping scenario. We also analyze the effect of positive and negative information about organic farming on WTP. Our results suggest that consumers are willing to pay a premium for organic milk but that this WTP decreases with the number of units purchased. Results also suggest that health issues, high price of organic foods, taste, and lack of information on organic foods are factors that influence WTP for organic milk. The type of information provided also plays a relevant role. Specifically, we found that subjects' WTP responds positively to positive information about organic farming and responds negatively to negative information. The provision of both positive and negative information does not affect WTP.
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U2 - 10.1111/j.1744-7976.2012.01254.x
DO - 10.1111/j.1744-7976.2012.01254.x
M3 - Article
AN - SCOPUS:84868304192
VL - 60
SP - 469
EP - 494
JO - Canadian Journal of Agricultural Economics
JF - Canadian Journal of Agricultural Economics
SN - 0008-3976
IS - 4
ER -