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Consumers' Willingness to Pay for the Color of Salmon: A Choice Experiment with Real Economic Incentives
Author(s) -
Alfnes Frode,
Guttormsen Atle G.,
Steine Gro,
Kolstad Kari
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.1467-8276.2006.00915.x
Subject(s) - willingness to pay , incentive , business , microeconomics , fillet (mechanics) , fish fillet , marketing , economics , fish <actinopterygii> , fishery , materials science , composite material , biology
In most retail markets, sellers post the price and consumers choose which products to buy. We designed an experimental market with posted prices to investigate consumers' willingness to pay for the color of salmon. Salmon fillets varying in color and price were displayed in twenty choice scenarios. In each scenario, the participants chose which of two salmon fillets they wanted to buy. To induce real economic incentives, each participant drew one binding scenario; the participants then had to buy the salmon fillet they had chosen in their binding scenario. The choice data were analyzed with a mixed logit model.