Beyond classical van Westendorp: Assessing price sensitivity for variants of algae-based meat substitutes

Food product innovations are characterized by high flop rates. In an early development stage, manifold product formulations seem feasible. To determine the most promising product option, market research can help, but is frequently considered too costly and complex. We assess the applicability of the van Westendorp approach, an inexpensive and simple method, for guiding early product design and pricing decisions for novel foods. Findings from a between-subject experiment for meat substitutes consisting of different shares of micro-algae indicate that micro-algae, while a cost driver, has little effect on price preferences. Implications for novel food product design, market research, and retailing are discussed.     

The willingness to pay–willingness to accept gap: A failed replication of Plott and Zeiler

The well-known willingness to pay–willingness to accept (WTP–WTA) gap refers to the observation that individuals attach a higher value to objects they own (WTA) than to objects they do not own (WTP). We report on experiments to re-investigate the possibility that the WTP–WTA gap arises from subject misconceptions due to experimental procedures as suggested by Plott and Zeiler (2005). The contribution of this paper is two-fold: first, we attempt to replicate the findings by Plott and Zeiler that the WTP–WTA gap disappears when using procedures that are aimed at reducing misconceptions, such as extensive training and practice rounds for the BDM mechanism. However, we fail to do so as the WTP–WTA gap persists in the main task where subjects state their WTA or WTP for a mug. Second, we use the paid practice rounds to identify subjects without apparent misconceptions and find that also for those subjects who never make dominated choices in the lottery tasks, the WTP–WTA gap in the mug task exists. Thus, we find no evidence of the idea that subject misconceptions are the main source of the WTP–WTA gap.     

岷江上游森林生态系统服务条件价值评估

针对岷江上游森林生态系统服务现状,采用条件价值评估法(CVM),以支付卡形式设计了374份调查问卷,调查了岷江流域居民对上游森林生态系统服务的支付意愿(WTP)。结果表明:岷江流域60.80%的居民家庭对岷江上游森林生态系统服务存在支付意愿,平均支付意愿为每户每年44.00元。按照岷江流域现有家庭数量计算,岷江上游森林生态系统服务价值每年是5 507.48×104元。利用二元Logistic模型,对支付意愿与个人社会经济变量进行了较为详尽的分析,并对影响居民支付意愿的主要因素作了环境经济学解释。     

Consumer Expectations for Geographical Origin: Eliciting Willingness to Pay (WTP) Using the Disconfirmation of Expectation Theory (EDT)

ABSTRACT

This study explores the impact of geographical origin in consumer expectations. Willingness to pay (WTP) for geographical origin was measured in three different information conditions (blind, labeled, and both blind and labeled) using an open ended technique of contingent valuation (CV) in the framework of expectations-disconfirmation theory (EDT). The results from the EDT show that a product with a positive reputation and highly preferred by the consumer is losing continuously the premium price paid for it. The decrease of the WTP in full information condition for the most preferred origin is probably due to the lowered consumer expectations and to the damages of the good image as a result of unfair competition, usurpation, and the misappropriation of the name. Geographical indications (GIs) may offer a solution to these problems by preserving the predictive value of origin information, maintaining high consumer expectations, and also preserving the good reputation of the product.     

The willingness of heritage tourists to pay for perceived authenticity in Pingxi,Taiwan

Authenticity plays an important role in heritage tourism. Previous studies have employed secondary data to assess the value of authenticity. This study goes further and empirically measures the intrinsic value of authenticity directly by integrating both qualitative and quantitative methods. The study was conducted in Pingxi, Taiwan and used open-ended questions to guide respondents to construct their own perceived authenticity. The respondents were asked whether they were willing to pay for what they had described. Four hundred and three valid responses were obtained. By using the dichotomous choice method and logistic distribution function, the willingness to pay (WTP) was estimated as NT$233. The study compiled 15 items to measure perceived authenticity based on previous literature and on-site visitor surveys. Three factors were derived by employing exploratory factor and confirmatory factor analyses. Discriminant analysis showed that intra-personal authenticity has a greater impact on WTP than object-related and inter-personal authenticity. This study might be the first empirical study to propose three independent concepts of authenticity, and to estimate the intrinsic value of perceived authenticity. The paper concludes suggestions that contribute both to theories of authenticity and applications by heritage management agencies.     

Accounting for Negative,Zero and Positive Willingness to Pay for Landscape Change in a National Park

In contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non‐negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over‐states the aggregate benefits of a woodland planting project by up to 44%.     

Design efficiency for non‐market valuation with choice modelling: how to measure it,what to report and why*

We review the basic principles for the evaluation of design efficiency in discrete choice modelling with a focus on efficiency of WTP estimates from the multinomial logit model. The discussion is developed under the realistic assumption that researchers can plausibly define a prior belief on the range of values for the utility coefficients. D‐, A‐, B‐, S‐ and C‐errors are compared as measures of design performance in applied studies and their rationale is discussed. An empirical example based on the generation and comparison of fifteen separate designs from a common set of assumptions illustrates the relevant considerations to the context of non‐market valuation, with particular emphasis placed on C‐efficiency. Conclusions are drawn for the practice of reporting in non‐market valuation and for future work on design research.     

Valuing high altitude spruce-fir forest improvements: importance of forest condition and recreation activity

High altitude spruce fir forests are typical around the world and are often subjected to multiple forms of recreational use. In this paper, we use household and recreation group data for a spruce fir forest high in the Appalachian Mountains of the U. S. to evaluate the benefits from forest protection (i. e., from improving the forest condition). Our benefits estimation procedures use the referendum-type, contingent valuation (CV) approach of Cameron (1988). We modify the usual practice of obtaining a single willingness-to-pay (WTP) value by using alternative questionnaire scenarios and conducting tests to examine i) household and recreation group value sensitivity to forest condition, and ii) recreation group differences in WTP for forest protection. A first sample of southeastern U. S. households was asked to value a forest protection program for a spruce-fir forest showing no impact from insect disturbance or atmospheric deposition. The second sample was asked to value a protection program for a forest already experiencing impact from insect infestation and air pollution. Logit analysis of the two samples revealed no statistically significant difference in household WTP between the two forest protection programs. Further analysis indicated that consumptive forest users (i. e., hunters and anglers) held forest protection values that were sensitive to a change forest condition, while nonconsumptive forest users (i. e., campers and hikers) held values that were insensitive to the same condition change. Recreation group comparisons revealed that consumptive forest users also held lower values for forest protection than nonconsumptive recreationists. These results demonstrate the importance of estimating public values for forest protection in terms of heterogeneous groups rather than as a homogeneous whole.     

Do consumers value nutritional labels?

The European Union is contemplating making the provision ofnutritional labels in food products mandatory. Using data collectedfrom food shoppers, we assessed consumers' valuation of nutritionallabels by analysing their willingness to pay a premium for abox of cookies with a nutritional label. On average, the meanwillingness to pay (WTP) for a box of cookies with a nutritionallabel is estimated to be about 11 per cent above the price ofthe box of cookies without a nutritional label. Consistent withprior expectations, our results also indicate a difference betweenthe WTP of individuals suffering from diet-related health problems(estimated mean 13 per cent) and those who do not suffer anydiet-related health problems (estimated mean 9 per cent).     

Winners, Losers, and the Nuclear-Waste Dilemma

This paper explores how property-right assignment affects social efficiency when a public program has both “public good” and “public bad” components. We show that when willingness to accept a public bad exceeds the willingness to pay, the net benefit is unambiguously lower when the property right supports the status quo institutional structure. Thus, Kaldor–Hicks efficiency tests tend to favor public programs and mitigation over the status quo even when mitigation negatively affects another group. To illustrate the result, we develop social-cost estimates for moving nuclear waste from current temporary-storage facilities to a permanent central repository at Yucca Mountain, NV, USA. For a representative city with a population of 226,195, the present value of the external cost of shipping waste is $1.42 billion when those living near temporary nuclear-waste storage facilities are assigned the property right to “health and safety.” That number swells to $5.95 billion when those living near the transport route are assigned the property right. Thus, property-right assignment affects the efficient level of nuclear-waste, and thus nuclear energy, produced.