Anchoring, Information, and Fragility of Choice Experiments: An Application to Consumer Willingness to Pay for Rice with Improved Storage Management
This study uses an experimental auction and a discrete choice experiment to determine consumers' willingness to pay (WTP) for rice with improved insect control and for rice stored using Integrated Pest Management and investigates potential reasonsÑanchoring and informationÑwhy some studies have...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
2017-05-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/258001 |
| Summary: | This study uses an experimental auction and a discrete choice experiment to determine consumers' willingness to pay (WTP) for rice with improved insect control and for rice stored using Integrated Pest Management and investigates potential reasonsÑanchoring and informationÑwhy some studies have found inconsistencies between the two methods. Results indicate that WTP estimates from the choice experiment are lower than consumers' average auction bids. Anchoring in the choice experiment appears to be an explanation for the discrepancy. Providing consumers with additional information about the products improved choice experiment results, producing consistent preference ordering and increasing WTP estimates. |
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| ISSN: | 1068-5502 2327-8285 |