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Valuing traceability of imported beef in Korea: an experimental auction approach *
Author(s) -
Lee Ji Yong,
Han Doo Bong,
Nayga Rodolfo M.,
Lim Song Soo
Publication year - 2011
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2011.00553.x
Subject(s) - traceability , willingness to pay , valuation (finance) , business , price premium , agricultural science , econometrics , agricultural economics , microeconomics , economics , statistics , mathematics , environmental science , finance
The major objective of this study is to estimate Korean food shoppers’ willingness to pay (WTP) for imported beef with traceability. We use an experimental elicitation method, the random n th price auction, to identify consumers’ valuation for traceable imported beef. We also analyse the effect of different types of information on these valuations. Results indicate that consumers are generally willing to pay a 39 per cent premium for the traceable imported beef over similar beef without traceability. Results also suggest that in contrast to the insignificant effect of positive information, negative and two‐sided information about traceability significantly reduces WTP.