Consumer preferences before and after a food safety scare: An experimental analysis of the 2010 egg recall |
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| Affiliation: | 1. Department of Applied Economics and Statistics, University of Delaware, United States;2. Department of Agricultural and Resource Economics, University of Maryland, United States;3. USDA Economic Research Service, United States;1. Department of Economics, University of Central Missouri, Warrensburg, MO 64093, United States;2. Ohio University, United States;3. Florida State University, United States;1. Food Safety Research Base of Jiangsu Province(School of Business), Jiangnan University, No.1800, Lihu Road, Binhu District, Wuxi, Jiangsu 214122, PR China;2. Synergetic Innovation Center of Food Safety and Nutrition, Jiangnan University, No.1800, Lihu Road, Binhu District, Wuxi, Jiangsu 214122, PR China;3. Department of Economics, School of Dongwu Business, Soochow University, No.50, Donghuan Road, Pingjiang District, Suzhou, Jiangsu 215021, PR China;4. School of Food Science and Technology, Jiangnan University, No.1800, LihuRoad, Binhu District, Wuxi, Jiangsu 214122, PR China;5. Dept. of Agricultural Economics, 313 C.E. Barnhart Bldg., University of Kentucky, Lexington KY 40546–0276, USA;1. Department of Economics, University of Windsor, Canada;2. School of Economic Sciences, Washington State University, United States of America;3. Department of Applied Economics and Statistics, University of Delaware, United States of America |
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| Abstract: | In August 2010, more than half a billion eggs were recalled in the U.S. because of a Salmonella outbreak. This study examines the effect of the recall with a unique pair of auction experiments investigating willingness to pay (WTP) for conventional and organic eggs, one conducted shortly before and one right after the recall with the same participants. In addition to the before and after bids, participants bid again after a negative information or balanced information treatment about the event. Accompanying surveys showed consumers had a high level of awareness of the recall but less knowledge of specific details, and viewed information on egg farm conditions as very important in their WTP. While there were no significant before and after differences, WTP for organic eggs significantly increased in the negative information treatment, and balanced information had a positive effect on consumer WTP for conventional eggs. |
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| Keywords: | Consumer preferences Laboratory experiments Revealed preference Food recall Eggs |
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