WTP and WTA for Non-GM and GM Food: UK ConsumersWanki Moon, Siva K. Balasubramanian and Arbindra Rimal No 21057, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Abstract: In a survey of UK consumers, we elicited their willingness-to-accept (WTA) a discount for GM foods and willingness-to-pay (WTP) a premium for non-GM foods in order to assess their valuation of the non-GM characteristic in food products. Mean WTA exceeds mean WTP, a finding that suggests the valuation of the non-GM characteristic reflects an endowment effect, imperfect substitutability between GM and non-GM foods, or both. Regression results show that perceived risks (benefits) associated with GM foods significantly increase (decrease) WTA and WTP estimates. Additional regression models using the difference between WTA and WTP as the dependent variable indicate that risk (benefit) perceptions increased (decreased) the discrepancy between WTA and WTP estimates. The role of risk perceptions in explaining this discrepancy is congruent with consumers' propensity toward loss aversion as predicted by the endowment effect hypothesis and prospect theory. Keywords: Consumer/Household; Economics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21057 Access Statistics for this paper More papers in 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC. |
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