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European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets
Author(s) -
Alfnes Frode,
Rickertsen Kyrre
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.t01-1-00128
Subject(s) - willingness to pay , common value auction , norwegian , economics , vickrey auction , business , microeconomics , auction theory , linguistics , philosophy
Consumers' willingness to pay for Irish, Norwegian, U.S. hormone‐free, and U.S. hormone‐treated beef was studied in an experimental auction market. We ran four simultaneous second‐price auctions to elicit efficiently the complete distribution of willingness to pay differences among our four alternatives. Most participants preferred domestic to imported beef, and half the participants preferred Irish to U.S. hormone‐free beef. Hormone‐treated beef received the lowest mean bid, but 28% of the participants were indifferent or preferred U.S. hormone‐treated to U.S. hormone‐free beef.