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Chapter 06: EXPERIMENTAL AUCTIONS TO MEASURE WILLINGNESS TO PAY FOR FOOD SAFETY AgEcon
Fox, John A.; Shogren, Jason F.; Hayes, Dermot J.; Kliebenstein, James B..
This book was originally published by Westview Press, Boulder CO, 1995.
Tipo: Book Chapter Palavras-chave: Food safety; Experimental economics; Auctions; Willingness to pay; Food Consumption/Nutrition/Food Safety.
Ano: 1995 URL: http://purl.umn.edu/25986
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THE EFFECTS OF INFORMATION ON CONSUMER DEMAND FOR BIOTECH FOODS: EVIDENCE FROM EXPERIMENTAL AUCTIONS AgEcon
Tegene, Abebayehu; Huffman, Wallace E.; Rousu, Matthew C.; Shogren, Jason F..
Consumers' willingness to pay for food products decreases when the food label indicates that a food product is produced with the aid of modern biotechnology. This bulletin presents empirical evidence on consumers' willingness to pay for biotech foods based on the presence or absence of labels advising that the food was prepared with the aid of biotechnology. The authors designed and conducted an experimental auction to elicit consumers' willingness to pay for "genetically modified" (GM)-labeled and standard-labeled foods under different information regimes. The evidence gathered for vegetable oil, tortilla chips, and potatoes shows that labels matter. In particular, under all information treatments, consumers discounted food items labeled "GM" by an...
Tipo: Report Palavras-chave: Biotech; Bioengineering; Biotechnology; Food labels; Auctions; Experimental economics; Random nth price; Willingness to pay; Demand and Price Analysis; Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/33577
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Agricultural Policies and Soil Degradation in Western Canada: An Agro-Ecological Economic Assessment: Project Summary AgEcon
Bouzaher, Aziz; Shogren, Jason F.; Holtkamp, Derald; Gassman, Philip W.; Archer, David W.; Lakshminarayan, P.G.; Carriquiry, Alicia L.; Reese, Randall; Kakani, Dharmaraju; Furtan, William Hartley; Izaurralde, R. Cesar; Kiniry, James R..
This report describes an integrated agro-ecological modeling system that was developed to assess the potential economic and soil erosion impacts of different agricultural policies for the Canadian prairie provinces of Alberta, Saskatchewan, and Manitoba. The system was constructed by linking erosion metamodels (response functions), based on multiple simulations of the USDA Erosion Productivity Impact Calculator (EPIIC), with a modified version of Agriculture Canada's Canadian Regional Agriculture Model (CRAM) denoted as RS-CRAM (resource sensitive CRAM). A summary of both the environmental and agricultural decision (RS-CRAM) components are presented, including a description of the modifications and enhancements that were made to CRAM. Results of policy...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Environmental Economics and Policy.
Ano: 1996 URL: http://purl.umn.edu/18660
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Theme Overview: Climate Change Economics AgEcon
Shogren, Jason F..
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/94492
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Experimental Economics and the Environment: Eliciting Values for Controversial Goods AgEcon
Shogren, Jason F.; Parkhurst, Gregory M.; Hudson, Darren.
We illustrate the experimental method by examining bidding behavior for controversial goods, i.e., goods in which bidders have positive and negative values. Our results suggest that bidding behavior differs across auction type. Bidders with positive induced values bid sincerely in a WTP auction. Bidders bid conservatively, however, in the WTA auction, foregoing profitable opportunities. Informing bidders of their optimal strategy serves to attenuate bidding discrepancies but does not eliminate them. Treating the WTP and WTA auctions as equivalent given positive and negative values could lead one to overstate the costs relative to the benefits of the controversial good.
Tipo: Journal Article Palavras-chave: Experiments; Willingness to pay; Willingness to accept; Positive and negative induced values; Crop Production/Industries; Institutional and Behavioral Economics.
Ano: 2010 URL: http://purl.umn.edu/90824
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BEHAVIORAL IMPLICATIONS OF COUNTER-CYCLICAL PAYMENTS AND BASE ACREAGE UPDATING UNDER THE 2002 FARM ACT AgEcon
Shogren, Jason F.; Dohlman, Erik; Chambers, William.
The introduction of counter-cyclical payments (CCPs) and a base acreage updating option under the 2002 Farm Act have potential supply response implications. To gain insight into the economic incentives and efficiency implications of these provisions, this paper presents the design of a 3-stage experimental market used to gauge the actual response of economic agents under conditions simulating those faced by U.S. farmers. When completed, the results of the experiment will be used to assess the impact of the CCP system and of policy uncertainty regarding future base-updating options, relative to a market revenue-only baseline.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy.
Ano: 2003 URL: http://purl.umn.edu/21937
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DO ALL THE RESOURCE PROBLEMS IN THE WEST BEGIN IN THE EAST? AgEcon
Shogren, Jason F..
Economics can make good policy better and bad policy go away- a message often constrained by the political realities surrounding federal resource policy toward the West. This essay responds to these challenges to economic reasoning based on the lessons learned after a stay at the Council of Economic Advisers. My goal is to help make apolitical economists more effective advocates of efficiency.
Tipo: Journal Article Palavras-chave: Agricultural and Food Policy.
Ano: 1998 URL: http://purl.umn.edu/31202
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EXPERIMENTAL MARKETS AND ENVIRONMENTAL POLICY AgEcon
Shogren, Jason F..
Experimental markets can be a useful tool to guide and evaluate environmental policy. This paper reviews four experiments to illustrate. Two institutional experiments are considered-Coasian bargaining with positive transaction costs, and a gaming experiment of dynamic choice in a conflict. Two valuation experiments are also discussed-the impact of sequential reduction mechanisms on the value of risk, and experimental auction markets to elicit the value of safer food.
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 1993 URL: http://purl.umn.edu/31538
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Second-Order Ambiguity in Very Low Probability Risks: Food Safety Valuation AgEcon
Kivi, Paul A.; Shogren, Jason F..
Food consumption involves inherently risky decisions with uncertain probabilities. This study examines how second-order ambiguity, or uncertainty over probabilities, affects food safety decisions. We conduct a food safety survey wherein subjects face both unambiguous and ambiguous situations, each with the same expected value. Respondents show a preference for unambiguous situations and state a willingness to pay to avoid ambiguity
Tipo: Journal Article Palavras-chave: Ambiguity; Ambiguity avoidance; Expected utility theory; Food safety; Low probability events; Risk; Second-order probabilities; Uncertainty; Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/97857
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Consumer Willingness to Pay for Genetically Modified Food Labels in a Market with Diverse Information: Evidence from Experimental Auctions AgEcon
Huffman, Wallace E.; Shogren, Jason F.; Rousu, Matthew C.; Tegene, Abebayehu.
With the continuing controversy over genetically modified (GM) foods, some groups advocate mandatory labeling of these products, while other groups oppose labeling. An important issue is how GM labels affect consumers' willingness to pay for these food products in the market. Using a statistically based economics experiment with adult consumers as subjects, we examine how willingness to pay changes for three food products--vegetable oil, tortilla chips, and potatoes--when GM labels are introduced. Participants in the experiments discounted GM-labeled foods by approximately 14% relative to their standard-labeled counterparts. The evidence also showed that sequencing of food labels affects willingness to pay, and that randomizing treatments is an important...
Tipo: Journal Article Palavras-chave: Consumer demand; Corn chips; Experimental economics; Food labels; Genetic modification; GM foods; Laboratory auctions; Potatoes; Vegetable oil; Willingness to pay; Consumer/Household Economics.
Ano: 2003 URL: http://purl.umn.edu/31071
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Valuing Access to our Public Lands: A Unique Public Good Pricing Experiment AgEcon
Aadland, David; Anatchkova, Bistra; Grandjean, Burke; Shogren, Jason F.; Simon, Benjamin; Taylor, Patricia A..
We report the findings of a unique nation-wide experiment to price access to our public lands. In 2004, the U.S. Federal Lands Recreation Enhancement Act mandated the creation of a new annual pass to cover all federal recreation sites that charge an entrance or access fee. Our task was to assist federal policymakers in determining an appropriate price for this new pass. Toward that end, we administered a contingent valuation phone survey to over 3700 households to estimate households’ willingness to pay (WTP) for the new pass at a variety of different prices. Our innovative experimental design allows us to estimate the degree of hypothetical bias in the sample and calibrate our WTP estimates to reflect actual purchasing decisions. In a sample of the...
Tipo: Conference Paper or Presentation Palavras-chave: Land Economics/Use.
Ano: 2007 URL: http://purl.umn.edu/9789
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Invasive Species and the Depth of Bioeconomic Integration AgEcon
Finnoff, David C.; Settle, Chad; Shogren, Jason F.; Tschirhart, John.
Tipo: Journal Article Palavras-chave: Resource /Energy Economics and Policy; Q0.
Ano: 2006 URL: http://purl.umn.edu/94380
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Wildlife Conservation Payments to Address Habitat Fragmentation and Disease Risks AgEcon
Horan, Richard D.; Shogren, Jason F.; Gramig, Benjamin M..
We build a stylized model to gain insights into the application of conservation payments to protect endangered species in the face of wildlife-livestock disease risks and habitat fragmentation. Greater connectivity of habitat creates an endogenous trade-off. More connectedness ups the chance that populations of endangered species will grow more rapidly; however, greater connectivity also increases the likelihood that diseases will spread more quickly. We analyze subsidies for both habitat connectedness and livestock vaccination. We find the cost-effective policy is to initially subsidize habitat connectivity rather than vaccinations; this increases habitat contiguousness, which eventually also increases disease risks. Once habitat is sufficiently...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/21076
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ARE U.S. CONSUMERS TOLERANT OF GM FOODS? AgEcon
Rousu, Matthew C.; Huffman, Wallace E.; Shogren, Jason F.; Tegene, Abebayehu.
Genetically modified (GM) foods have caused many controversies. One important controversy relates to tolerance - the impurity rate that is tolerated before a commodity must be labeled as genetically modified. Currently, the United States does not have a specific tolerance or threshold level for GM foods. This paper uses experimental auctions to determine consumers' acceptance of non-GM foods with zero, 1 percent, and 5 percent tolerance for genetically modified material. Our results indicate that consumers would pay less for food that tolerates GM material, but the discount is not significantly different for foods with 1-percent and 5-percent GM content.
Tipo: Working or Discussion Paper Palavras-chave: Genetically modified (GM) foods; Contamination thresholds; Laboratory auctions; Nth-price auction; Vegetable oil; Tortilla chips; Russet potatoes; Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/18227
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WHO DO CONSUMERS TRUST FOR INFORMATION: THE CASE OF GENETICALLY MODIFIED FOODS AgEcon
Huffman, Wallace E.; Rousu, Matthew C.; Shogren, Jason F.; Tegene, Abebayehu.
To be effective, groups that disseminate information need the trust of consumers. When multiple groups provide conflicting information on a new product or process like GM-foods, consumers place different levels of trust in the various sources. We present a model of the contributions of personal and social capital of a consumer, and test a multinominal logit model of relative trust in five different sources of information on genetic modification using a unique data set. Among our findings is that an increase in consumer's education lowers the probability of trusting information from government, private industry/organizations, consumer and environmental groups, or other sources relative to information from an independent, third-party source, and...
Tipo: Working or Discussion Paper Palavras-chave: Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/18205
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Loss Aversion in Water Markets AgEcon
Ranjan, Ram; Shogren, Jason F..
Tipo: Working or Discussion Paper Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/15656
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BETTER DEAD THAN GM-FED? INFORMATION AND THE EFFECTS OF CONSUMERS' RESISTANCE TO GM-FOODS IN HIGH-INCOME COUNTRIES AgEcon
Huffman, Wallace E.; Rousu, Matthew C.; Shogren, Jason F.; Tegene, Abebayehu.
This paper addressed the puzzling resistance of Presidents of southern African countries to food aid in 2002, given near certain starvation and long-term negative health effects of malnutrition of their constituents. First, I show that NGOs led by Greenpeace and Friends of the Earth are disseminating information claiming that GM foods are dangerous to human health and are "Frankenfoods." Second, people in European Union countries, who are not in any danger of starvation, have strong preferences for non-GM foods, which they can easily afford. Over the long term, however, the tastes of EU consumers matter to southern African countries because some of these countries hope to export agricultural products in the future. GM-food aid, which most likely would...
Tipo: Working or Discussion Paper Palavras-chave: Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/18208
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SHOULD THE UNITED STATES REGULATE MANDATORY LABELING FOR GENETICALLY MODIFIED FOODS? AgEcon
Huffman, Wallace E.; Rousu, Matthew C.; Shogren, Jason F.; Tegene, Abebayehu.
Public debate continues over whether the United States should regulate genetically modified (GM) foods by imposing a mandatory labeling policy. This paper develops a model that shows that a voluntary GM-labeling policy results in higher welfare than a regulated mandatory GM-labeling policy, if consumers can accurately read the signals in each market. We then develop an experiment that shows consumers behave as if they can accurately identify signals for GM foods. Our model and results support the perspective that the United States has been prudent in fending off calls for regulations demanding a mandatory GM-labeling policy.
Tipo: Working or Discussion Paper Palavras-chave: Genetically modified foods; Mandatory labeling; Voluntary labeling; Laboratory auctions; Nth-price auction; Vegetable oil; Tortilla chips; Russet potatoes; Food Consumption/Nutrition/Food Safety; Research and Development/Tech Change/Emerging Technologies.
Ano: 2002 URL: http://purl.umn.edu/18215
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How Trade Politics Affect Invasive Species Control AgEcon
Margolis, Michael; Shogren, Jason F..
Trade has become the main mode of transport for many invasive species including diseases and agricultural pests. Most species are brought to their new homes unintentionally, which constitute a market failure rooted in international trade. Unless it is practical to drive invasion risk to zero, the external costs may justify a tariff. In this paper we analyze the political process likely to govern the formation of tariffs so justified, using a straightforward incorporation of an invasive species externality into Grossman and Helpman's well-known political economy model. We show our measure of disguised protectionism -the gap between the optimal tariff and that set in the equilibrium of the political economy game- is equal to the tariff that would be set if...
Tipo: Working or Discussion Paper Palavras-chave: Invasive species; Protectionism; Tariff; Political economy; Environmental Economics and Policy; Q17; Q56; Q57.
Ano: 2004 URL: http://purl.umn.edu/10770
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Stepping stones for biological invasion: A bioeconomic model of transferable risk AgEcon
Warziniack, Travis; Finnoff, David C.; Bossenbroek, Jonathan; Shogren, Jason F.; Lodge, David.
Herein we model the widespread dispersal and management of an invasive species as a weak-link public good. The risk of introduction is driven in part by economic activity, is influenced by policies directed at the risk, and economic activity responds/adapts to the risk. Framed around recent introductions and rapid spread of dreissenid mussels in the Western United States, we find three key results. First, partial equilibrium estimates of welfare loss are significantly overestimated relative to general equilibrium estimates. If ecosystem services and market goods are substitutes the partial equilibrium bias is greater than if they are compliments. Second, well-intended policies do not necessarily reduce overall risk; risk reduction actions can transfer risk...
Tipo: Conference Paper or Presentation Palavras-chave: Bioeconomic; Invasive species; Risk; Weak-link; Welfare; Environmental Economics and Policy; Risk and Uncertainty; Q2; Q26; Q57.
Ano: 2010 URL: http://purl.umn.edu/60957
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