Valuing Ambiguity: The Case of Genetically Engineered Growth EnhancersJournal of Agricultural and Resource Economics
AbstractA split-valuation method is developed and implemented to elicit the willingness to pay to consume-or avoid consuming-a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The results show that the method can be used to successfully value a good of ambiguous quality. Our application reveals that for a sample of students at a midwestern land-grant institution, the average respondent is willing to pay a premium for meat produced with the use of a genetically engineered growth enhancer that has 30% to 60% fewer calories and is 10% to 20% leaner.
Copyright OwnerWestern Agricultural Economics Association
Date AvailableApril 1, 2013
Citation InformationBrian L. Buhr, Dermot J. Hayes, Jason F. Shogren and James B. Kliebenstein. "Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers" Journal of Agricultural and Resource Economics Vol. 18 Iss. 2 (1993) p. 175 - 184
Available at: http://works.bepress.com/dermot_hayes/8/