Estimating consumer willingness to pay for food quality with experimental auctions: the case of yellow versus fortified maize meal in Kenya

Biofortification of maize with provitamin A carotenoids is a new approach to the alleviation of vitamin A deficiencies in Africa. Unfortunately these varieties are yellow or orange, while consumers generally prefer white. Consumer willingness to pay for yellow and fortified maize was compared in experimental auctions in three regions in Kenya. The premium that consumers are willing pay for fortified maize (24%) was higher than the discount they require to buy yellow maize (11%), and in one zone consumers prefer yellow. Yellow color is, therefore, not an impossible obstacle for biofortified maize, although it would clearly be easier to introduce this maize first in regions where yellow maize is currently grown.     

Regime switching as a test for exchange rate bubbles

This paper develops a new test for speculative bubbles, which is applied to data for the Japanese yen, the German mark and the Canadian dollar exchange rates from 1977 to 1991. The test assumes that bubbles display a particular kind of regime-switching behaviour, which is shown to imply coefficient restrictions on a simple switching-regression model of exchange rate innovations. Test results are sensitive to the specification of exchange rate fundamentals and other factors. Evidence most consistent with the bubble hypothesis is found using an overshooting model of the Canadian dollar and a PPP model of the Japanese yen.     

Consumer willingness to pay for genetically modified food in Kenya

Genetically modified (GM) crops are popular in many regions of the world, but their deployment in Africa is hindered by safety concerns and regulatory issues, although the continent is in dire need of boosting its food production. Although consumers' acceptance of GM food has been analyzed in many continents, no such studies have been conducted in Africa. Therefore, a survey of 604 consumers was conducted in Nairobi, Kenya, in 2003, to gauge consumers' awareness of GM crops, their willingness to pay (WTP) for GM food, and the factors that influence their WTP. Consumers' knowledge of GM crops was limited and only 38% of the 604 respondents were aware of GM crops. People in higher education and income groups were more aware than others. Regardless, people were generally appreciative of the technology, and a large majority (68%) would be willing to buy GM maize meal at the same price as their favorite brand. Consumers were, however, concerned about possible side effects, especially on the environment and biodiversity. WTP was estimated using a double‐bounded dichotomous choice model, and the mean WTP was found to be 13.8% higher than the average price of non‐GM maize meal. Perceptions of health risk, and ethical and equity concerns had a negative influence on the likelihood of purchasing GM maize meal, whereas trust in government to ensure food quality had a positive influence on WTP. People with at least some secondary education and those in the high‐income category were more likely to purchase GM maize meal at the same price. The study concludes that, because awareness is still low, appropriate communications are needed to involve the consumer in the debate. Consumers' acceptance in this study was high, but the research needs to be expanded to rural areas, where most consumers live, and other survey methods need to be explored.     

Estimating Trade Misinvoicing from Bilateral Trade Statistics: The Devil is in the Details

Trade misinvoicing, an important channel of illicit financial flows, is frequently estimated by the partner-country trade data comparison method. However, this method relies on a critical but incorrect assumption that the trade statistics in partner countries exhibit no misinvoicing. This study proves that the assumption of no misinvoicing in partner countries cannot be supported, raising serious doubts about the reliability of the method and a possibility that inappropriate policy decisions may be made based on the erroneous estimates of trade misinvoicing. We introduce an alternative method to estimate trade misinvoicing which does not rely on the trade statistics of partner countries.     

Why Organizations Struggle to Implement a Market Orientation: Insights Into Beliefs of Top Management

The role of management as an antecedent and barrier to market orientation is well documented. However, the often deeply held beliefs of top management that influence the degree to which their firms are market oriented has been largely overlooked. This study sought to understand these beliefs using a qualitative research method. Case study research employing in-depth semistructured interviews of four Australian vertically integrated horticultural enterprises was undertaken. A total of 28 beliefs of senior management team members were identified. These beliefs, which appeared to have become part of organizational culture, influenced the way market intelligence was gathered and shared and the degree to which the organizations planned, coordinated, and timed their responses to market opportunities and threats. The results suggest that changing management beliefs about marketing and market orientation may be an important component of enhancing the degree to which firms are market oriented.     

Enabling the language of accessible tourism

The growing body of literature on “accessible tourism” lacks a critical scholarly debate around its specific language use and nomenclatures. To fill this gap, this paper provides a first examination of language. Language provides a unique capability to resist, strengthen and reframe identities of individuals and groups, yet can also reinforce, weaken and perpetuate dominant worldviews of disability. A content analysis examined previous accessible tourism literature with results illustrating that diversity exists amongst the varying terminologies adopted by scholars. Terms were employed loosely, inconsistently and interchangeably, euphemistically with erroneous understandings and nuances. The paper concludes with critical discussion about the power of researchers to (re) produce oppression through language that maligns and misrepresents, or to (re) conceptualise and (re) construct the world we live in with liberating language that facilitates positive social change.     

On the Opportunity Cost of Crop Diversification

Distance functions are increasingly being augmented, with environmental goods treated as conventional outputs. A common approach to evaluate the opportunity cost of providing an environmental good is the exploitation of the distance function's dual relationship to the value function. This implies that the opportunity cost is assumed to be non‐negative. This approach also requires a convex technology set. Focusing on crop diversification for a balanced sample of 44 cereal farms in the East of England for the years 2007–2013, this paper develops a novel opportunity cost measure that does not depend on these strong assumptions. We find that the opportunity cost of crop diversification is negative for most farms.