Chengyan Yue

Cognitive dissonance as a means of reducing hypothetical bias

Hypothetical bias is a persistent problem in stated preference studies. We propose and test a method for reducing hypothetical bias based on the cognitive dissonance literature in social psychology. A central element of this literature is that people prefer not to take inconsistent stands and will change their attitudes and behaviour to make them consistent. We find that participants in a stated preference willingness-to-pay study, when told that a nonhypothetical study of similar goods would follow, state significantly lower willingness to pay (WTP) than participants not so informed. In other words, participants adjust their stated WTP to avoid cognitive dissonance, that is, taking inconsistent stands on their WTP for the good being offered. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Are Consumers Willing to Pay More for Biodegradable Containers Than for Plastic Ones? Evidence from Hypothetical Conjoint Analysis and Nonhypothetical Experimental Auctions

This study used and compared hypothetical conjoint analysis and nonhypothetical experimental auctions to elicit floral customers’ willingness to pay for biodegradable plant containers. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium is not the same for different types of containers. This article also shows the mixed ordered probit model generates more accurate results when analyzing the conjoint analysis Internet survey data than the ordered probit model.

Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade

We derive a method to econometrically estimate the tariff equivalent and foregone trade effects of a prohibitive technical barrier to trade (TBT) based on Wales and Woodlands Kuhn-Tucker approach to corner solutions in consumer choice. The method overcomes the lack of observed data on bilateral trade flows and accounts for differentiated goods by place of origin. We apply the derived random utility model to international trade in apples to identify the tariff equivalent of prohibitive nontariff trade barriers imposed by Australia on potential imports of New Zealand apples. We estimate the forgone apple trade between the two countries, the implied trade injury imposed by Australia on New Zealand, and the welfare loss to Australia. The removal of the TBTs would induce net welfare gains around US

Investigating factors influencing consumer willingness to buy GM food and nano-food

50 million annually for Australia.

Are Consumers Willing to Pay More for Low-Input Turfgrasses on Residential Lawns? Evidence from Choice Experiments

Emerging technologies applied to food products often evoke controversy about their safety and whether to label foods resulting from their use. As such, it is important to understand the factors that influence consumer desires for labeling and their willingness-to-buy (WTB) these food products. Using data from a national survey with US consumers, this study employs structural equation modeling to explore relationships between potential influences such as trust in government to manage technologies, views on restrictive government policies, perceptions about risks and benefits, and preferences for labeling on consumer’s WTB genetically modified (GM) and nano-food products. Some interesting similarities and differences between GM- and nano-food emerged. For both technologies, trust in governing agencies to manage technologies did not influence labeling preferences, but it did influence attitudes about the food technologies themselves. Attitudes toward the two technologies, as measured by risk–benefit comparisons and comfort with consumption, also greatly influenced views of government restrictive policies, labeling preferences, and WTB GM or nano-food products. For differences, labeling preferences were found to influence WTB nano-foods, but not WTB GM foods. Gender and religiosity also had varying effects on WTB and labeling preferences: while gender and religiosity influenced labeling preferences and WTB for GM foods, they did not have a significant influence for nano-foods. We propose some reasons for these differences, such as greater media attention and other heuristics such as value-based concerns about “modifying life” with GM foods. The results of this study can help to inform policies and communication about the application of these new technologies in food products.

Perceived quality in organic and conventional pork markets in Germany

A choice experiment with real products was used to investigate consumer willingness to pay (WTP) for several low-input attributes of turfgrasses. The choice scenarios consisted of turfgrass plots, which varied in aesthetic quality characteristics and were labeled with differing levels of maintenance requirements (irrigation, fertilizer, etc.), shade adaptation, origin, and price. A mixed logit model was used to analyze the choice data and estimate consumer WTP. Our results suggest that low-input maintenance attributes significantly influence consumer choice behavior and identify a strong consumer preference for reduced irrigation and mowing requirements. The introduction of low-input turfgrasses could be a viable strategy for reducing the maintenance inputs and costs for residential lawn care.

Does Nutrition Information Contribute to Grocery Shoppers’ Willingness to Pay?

Abstract Food choice and consumption are based on perceived product quality, consumer attitudes, socio-demographics as well as economic factors. This article analyzes the impact of quality characteristics, attitudes, and socio-demographics on consumption of organic and conventional pork. Data come from a German consumer survey. A bivariate ordered probit model is used to test the role of quality perception in explaining choice over organic versus conventional pork. Clear differences in consumers’ use of certain quality characteristics emerge as consumers perceive and evaluate conventional and organic fresh pork. Product appearance, perceived food safety, and production method are especially important characteristics. An increased consumption of conventional pork decreases the likelihood of consuming organic pork and vice versa.

What Attributes Are Consumers Looking for in Sweet Cherries? Evidence from Choice Experiments

ABSTRACT An experimental auction and the eye-tracking technology are used to detect the relationship between consumers’ understanding of the nutrition information and their willingness to pay for food items. Additional attention is given to health-conscious individuals. Salad mix and apple juice are selected for the experiment. A Tobit model is used for the analysis. The results show that nutrition information has some effect on consumers’ purchasing decision. Shoppers are willing to pay less for fat and mineral information, but more for ingredient, protein, sodium, and carbohydrate information of salad mix. As for apple juice, shoppers care only for energy and other nutrient information, as well as the health claim “vitamin C naturally high.” Further, health-conscious individuals are more responsive to the nutrition claims, such as “high in fiber” (salad mix) and “vitamin C naturally high” (orange juice). A possible limitation of the conclusion exists due to the small sample size.

U.S. Peach Producer Preference and Willingness to Pay for Fruit Attributes

We investigate heterogeneous consumer preferences and willingness to pay (WTP) for various sweet cherry attributes using choice experiments. A mixed logit model and a latent-class logit model are used to estimate consumer WTP for the attributes and identify groups of consumers based on those preferences. We find that consumers of sweet cherries will pay the greatest premium for sweetness and the smallest premium for fruit size. Three groups of consumers are identified—flavor sensitive, price sensitive, and storage sensitive. The results are useful for suppliers of sweet cherries when adopting targeted marketing strategies.

Estimation of market equilibrium values for apple attributes

This study investigates U.S. peach producers’ willingness to pay (WTP) for potential improvement of peach fruit attributes. Data were collected from 124 U.S. peach producers. The choice experiment and socioeconomic data were analyzed using mixed logit (ML) models to estimate the producer WTP and preferences for peach attributes. The results indicate that the WTP for attribute values vary across peach producers from different production regions (California and eastern United States), with different selling targets (fresh and processed) and different orchard sizes (smaller or larger than 15 acres). These results provide useful information for peach breeders in prioritizing traits in their breeding programs. Peach [Prunus persica (L.) Batsch] is an important crop for both fresh and processed markets in worldwide. It is increasingly challenging for peach producers to select the ideal scion cultivar that satisfies market requirements and maximizes their profits, especially considering the high capital investment for establishment and time lag to generating a positive cash flow (Day et al., 2009; Yue et al., 2014). Total farm gate value of U.S. peach production was