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Labeling Context and Reference Point Effects in Models of Food Attribute Demand
Author(s) -
Hu Wuyang,
Adamowicz Wiktor L.,
Veeman Michele M.
Publication year - 2006
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/j.1467-8276.2006.00914.x
Subject(s) - context (archaeology) , set (abstract data type) , point (geometry) , product (mathematics) , econometrics , observable , food labeling , computer science , economics , mathematics , food science , paleontology , chemistry , physics , geometry , quantum mechanics , biology , programming language
There is considerable interest in the effect of labels on food product demand. Labeling statements may convey new information about attributes and place consumers in different choice contexts; consumers' assessment of information in labels may be affected by reference points. We examine labeling context relating to genetically modified (GM) food as a factor in the stochastic component of a random utility model and assess reference points over a set of observable characteristics of consumers. We find that labeling context effects are present, although relatively small, while reference dependence is a very important factor that varies over observable characteristics of the sampled consumers.