Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers

Thumbnail Image
Date
1993-12-01
Authors
Buhr, Brian
Hayes, Dermot
Shogren, Jason
Kliebenstein, James
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Research Projects
Organizational Units
Organizational Unit
Journal Issue
Is Version Of
Versions
Series
Department
Economics
Abstract

A 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.

Comments

This article is from Journal of Agricultural and Resource Economics 18, no. 2 (1993): 175–1843.

Description
Keywords
Citation
DOI
Source
Copyright
Fri Jan 01 00:00:00 UTC 1993
Collections