Article
Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food
Economic Inquiry
Document Type
Article
Disciplines
Publication Version
Published Version
Publication Date
7-1-2007
DOI
10.1111/j.1465-7295.2007.00017.x
Abstract
Food products containing genetically modified (GM) ingredients have entered the market over the past decade. The biotech industry and environmental groups have disseminated conflicting private information about GM foods. This paper develops a unique methodology for valuing independent third-party information in such a setting and applies this method to consumers’ willingness to pay for food products that might be GM. Data are collected from real consumers in an auction market setting with randomized information and labeling treatments. The average value of third-party information per lab participant is small, but the public good value across U.S. consumers is shown to be quite large.
Rights
Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.
Language
en
File Format
application/pdf
Citation Information
Matthew Rousu, Wallace E. Huffman, Jason F. Shogren and Abebayehu Tegene. "Effects and Value of Verifiable Information in a Controversial Market: Evidence from Lab Auctions of Genetically Modified Food" Economic Inquiry Vol. 45 Iss. 3 (2007) p. 409 - 432 Available at: http://works.bepress.com/wallace-huffman/84/
This article is from Economic Inquiry 45 (2007): 409, doi: 10.1111/j.1465-7295.2007.00017.x.