Abstract
We examine the effects of adding an independent food attribute on consumers' willingness to pay (WTP) estimates for both cue and independent food attributes. In three separate choice experiments, a cue attribute present along the entire sequence of choices had independent food attributes enucleated and made explicit from the cue at later stages. Logit models were estimated using (i) a complete panel approach; (ii) error components and (iii) utility in WTP-space. Results suggest that the way a subject processes food attributes depends not only on the design dimensions but also on food attributes' functional roles. When complexity of designs increases, models that account for different sources of heterogeneity have better fit to the data.
Original language | English |
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Pages (from-to) | 211-230 |
Number of pages | 20 |
Journal | European Review of Agricultural Economics |
Volume | 44 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2017 |
Bibliographical note
Funding Information:This work was partially supported by the National Research Foundation of Korea Grant #NRF-2014S1A3A2044459, Research Council of Norway Grant # 233800 and AgBioResearch of Michigan State University.
Publisher Copyright:
© Oxford University Press and Foundation for the European Review of Agricultural Economics 2016; all rights reserved.
Keywords
- Choice design complexity
- Choice experiment
- Complete panel data approach
- Cue and independent food attributes
- Willingness to pay
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics