This paper explores the psychological foundations of the 'Willingness to Pay/Willingness to Accept' discrepancy. Using a qualitative approach we find that the two response modes appear to invoke different strategies for completion. An examination of the heuristics used by respondents to answer questions concerning the buying and selling of the chance to play a straightforward lottery shows that only some could be taken as supporting current theories which aim to explain the discrepancy.

Welfare science has built its foundations on veterinary medicine and thus measures of health. Since bottlenose dolphins (Tursiops truncatus) tend to mask symptoms of poor health, management in captivity would benefit from advanced understanding on the links between health and behavioural parameters, and few studies exist on the topic. In this study, four representative behavioural and health measures were chosen: health status (as qualified by veterinarians), percentage of daily food eaten, occurrences of new rake marks (proxy measure of social activity), (...) and willingness to participate (WtP) in Positive Reinforcement Training sessions as qualitatively measured by their caretakers. These data were collected multiple times a day, every day over the course of a year from a multi-facility, large sample size (ndolphins= 51), allowing powerful analyses of the relationships between measures. First, it was found that dolphins with a higher WtP score also had a significantly better health status, ate a higher percentage of their daily food, and a lower occurrence of new rake marks. In addition, the WtP score was significantly lower up to 3 days before the weekly veterinary diagnosis of a decrease in health state; the percentage of daily food eaten and new rake mark measures did not show any significant change before such a diagnosis. These results suggest that WtP in training sessions is a potential behavioural measure of dolphin welfare, and an indicator of early changes in the dolphins’ health state. We therefore suggest measurement of WtP as a more practical and non-invasive tool to support veterinary care and general management. More work needs to be conducted to elucidate the influence of social behaviour on health, and to identify other potential welfare indicators, but this long-term study has shown that qualitative measures can be both practical and valid when assessing dolphin welfare. (shrink)

In this paper we experimentally investigate the disparity between willingness-to-accept (WTA) and willingness-to-pay (WTP) for risky lotteries. The direction of the income effect is reversed by endowing subjects with the highest price of a lottery when asking the WTP question. Our results show that the income effect is too small to be the only source of the disparity. Since the disparity concentrates on a subsample of subjects, parametric and nonparametric tests of the WTA-WTP ratio may lead to contradictory results. The (...) disparity is significantly reduced when background risk is introduced. That is, putting subjects always into a risky position could improve the contingent valuation method, which is often concerned with the assessment of risky situations such as health risks, automobile safety, etc. (shrink)

We analyze the effects of uncertainty on WTA, WTP and the WTA–WTP gap. Extending the approach of Weber (Econom Lett 80:311–315, 2003) to the case of lotteries, we develop an exact expression for the WTA–WTP gap that allows identification of its magnitude under different utility specifications. Reinterpreting and extending results by Gabillon(Econom Lett 116:157–160, 2012), we also identify generally the relationship between an agent’s utility of income and the gap’s algebraic sign, as well as the effects of risk increases on (...) WTA and WTP. Finally, we derive the limit behavior of the gap as income or risk increase. (shrink)

This paper tests whether individual perceptions of markets as good or bad for a public good is correlated with the propensity to report gaps in willingness to pay and willingness to accept revealed within an incentive compatible mechanism. Identifying people based on a notion of market affinity, we find a substantial part of the gap can be explained by controlling for some variables that were not controlled for before. This result suggests the valuation gap for public goods can be reduced (...) through well-defined variables. (shrink)

Selective accessibility mechanisms indicate that anchoring effects are results of selective retrieval of working memory. Neuroimaging studies have revealed that the right dorsolateral prefrontal cortex (DLPFC) is closely related to memory retrieval and performance. However, no research has investigated the effect of changing the cortical excitability in right DLPFC on anchoring effects. Transcranial direct current stimulation (tDCS) can modulate the excitability of the human cerebral cortex, while anodal and cathodal tDCS are postulated to increase or decrease cortical activity, respectively. In (...) this study, we used tDCS to investigate whether effects of increased or decreased right DLPFC excitability influence anchoring effects in willingness to pay (WTP) experiments. Ninety participants were first randomly assigned to receive either anodal, cathodal, or sham stimulation of 15 minutes, then they performed a valuation task regarding WTP. The results showed that anchoring effects were negatively related to activities of right DLPFC: the anodal stimulation diminished anchoring effects while the cathodal stimulation increased anchoring effects. These outcomes provide one of the first instances of neural evidence for the role of the right DLPFC in anchoring effects and support psychological explanations of the selective accessibility mechanisms and cognitive sets. (shrink)

This paper presents an experimental study of common consequence effects in binary choice, willingness-to-pay elicitation, and willingness-to-accept elicitation. We find strong evidence in favor of the fanning out hypothesis for both WTP and WTA. In contrast, the choice data do not show a clear pattern of violations in the absence of certainty effects. Our results underline the relevance of differences between pricing and choice tasks, and their implications for models of decision making under risk.

Several experimental studies have reported that an otherwise robust regularity—the disparity between Willingness-To-Accept and Willingness-To-Pay—tends to be greatly reduced in repeated markets, posing a serious challenge to existing reference-dependent and reference-independent models alike. This article offers a new account of the evidence, based on the assumptions that individuals are affected by good and bad deals relative to the expected transaction price (price sensitivity), with bad deals having a larger impact on their utility (`bad-deal’ aversion). These features of preferences explain the (...) existing evidence better than alternative approaches, including the most recent developments of loss aversion models. (shrink)

A frequent justification in the literature for using stated preference methods (SP) is that they are the only methods that can capture the so-called total economic value (TEV) of environmental changes to society. Based on follow-up interviews with SP survey respondents, this paper addresses the implications of that argument by shedding light on the construction of TEV, through respondents’ perspective. It illuminates the deficiencies of willingness to pay (WTP) as a measure of value presented as three aggregated themes considering respondents’ (...) unintentionality, their retraction once they understood that their WTP could be decisive in cost-benefit analysis and the inherent incompleteness of WTP. We discuss why the TEV discourse persists, how it conceals rather than reveals broader notions of value and in what ways our results support the development of alternative approaches that truly endorse plurality in environmental valuation and decision-making. (shrink)

An experimental survey was undertakento explore the links between thecharacteristics of a moral issue, the degree ofmoral intensity/moral imperative associatedwith the issue, and people'sstated willingness to pay for policy toaddress the issue. Two farm animal welfareissues were chosen for comparison and thecontingent valuation method was used to elicitpeople's wtp. The findings of the surveysuggest that increases in moral characteristicsdo appear to result in an increase in moralintensity and the degree of moral imperativeassociated with an issue. Moreover, there was apositive link (...) between moral intensity/moralimperative associated with an issue andpeople's stated wtp for policy to address theissue. The paper discusses the relevance of thefindings of the survey in the context of thedebate concerning the relationship betweenmoral and economic values and the use of thecontingent valuation method to estimatepeople's wtp of policy options with moraldimensions. (shrink)

Contingent valuation of the environment has proven popular amongst environmental economists in recent years and has increased the role of monetary valuation in public policy. However, the underlying economic model of human psychology fails to explain why certain types of stated behaviour are observed. Thus, good scope exists for interdisciplinary research in the area of economics and psychology with regard to environmental valuation. A critical review is presented here of some recent research by social psychologists in the US attempting to (...) explain stated behaviour in contingent valuation. Attitudinal scales have been used to analyse the role of ecocentric, biocentric and altruistic motives for giving. However, the research is shown to draw some potentially misleading conclusions and be unrepresentative of contingent valuation. Two recent economic studies using contingent valuation are then reported and shown to have identified non-economic motives for WTP. The complexity of value formation and expression is found to go far beyond that generally accepted by economic models. Greater consideration of the role played by attitudes and ethical considerations then becomes relevant to the interpretation of results being used in standard cost-benefit analysis and environmental policy. (shrink)

The motive of this study is to identify the factors influencing the willingness to pay (WTP) a premium price for socially responsible food products (SRFPs) in India. This study is based on primary survey of 398 respondents. Descriptive statistics and factor analysis have been used for data analysis. Further, logistic regression was used to examine the factors affecting the WTP a premium price for SRFPs. Results demonstrate that respondents of higher age are more likely to pay premium prices for SRFPs. (...) Male consumers are two times more likely to have higher WTP for SRFPs. WTP a premium price is significantly influenced by the consumers' reference group, pro‐environmental intention, and concern for the animals. Gender, age, consumers' reference group, pro‐environmental intention, and concern for the animals determine WTP premium prices for SRFPs. There are relatively very limited researches on this topic in emerging economies including India, where the adoption of socially responsible products is in early stage. The practical implications of this study are to help in increasing the sales of the SRFPs and producers to develop appropriate policy design. (shrink)

As the market share of Fair Trade food products in countries of the North grows, understanding consumer preferences with regard to this recent label is becoming increasingly important. This article reports on a test of the consistency of consumers' stated preferences, for which a survey was conducted at the place and time of actual purchase decisions. The aim of the survey was to further improve the understanding of consumers' stated motivations for buying 'Fair Trade' and 'organic Fair Trade' bananas in (...) Switzerland. Hypothetical questions with double dichotomous choices were used to compare two types of bananas - conventional and labelled - and to assess the average stated willingness-to-pay (WTP) for Fair Trade-labelled bananas. The results show that Fair Trade is largely accepted in Switzerland and that the premium for purchasing such products is influenced by age, the number of young children and the perception of the Fair Trade label. I then used a comparative test of field observations and stated preferences for bananas to measure inconsistency in choices. This comparison reveals that less than one-fifth of the answers are in principle inconsistent. These results point to the importance of confidence in the Fair Trade labels if consumers' purchases are to increase. (shrink)

With the rapid development of Internet technology, sports media consumption is migrating toward streaming. The online streaming of sporting events has become the important way of copyrights holders to engage sports fans, especially young fans. Therefore, it is vital to understanding users' willingness to pay. Given that previous studies of the livestream sports broadcasts online have not dealt with users' payment intention, the originality of this study is that it explore users' motivation by combining information system research with the consumer (...) demand theory. The study aimed to examine the factors that influence users' payment intention to stream online sports by using the extended Technology Acceptance Model. Data from questionnaires completed by 330 Chinese respondents determined how perceived usefulness, ease, enjoyment, and satisfaction, influence users' WTP. Satisfaction positively correlated with users' payment intentions, impacted WTP values, mediated ease of use. The analysis also revealed the necessity for broadcast platforms to improve satisfaction and to increase payment intentions. (shrink)

A frequent justification in the literature for using stated preference methods (SP) is that they are the only methods that can capture the so-called total economic value (TEV) of environmental changes to society. Based on follow-up interviews with SP survey respondents, this paper addresses the implications of that argument by shedding light on the construction of TEV, through respondents’ perspective. It illuminates the deficiencies of willingness to pay (WTP) as a measure of value presented as three aggregated themes considering respondents’ (...) unintentionality, their retraction once they understood that their WTP could be decisive in cost-benefit analysis and the inherent incompleteness of WTP. We discuss why the TEV discourse persists, how it conceals rather than reveals broader notions of value and in what ways our results support the development of alternative approaches that truly endorse plurality in environmental valuation and decision-making. (shrink)

The concept of community integrated pest management (IPM), which is well developed in Indonesia and Vietnam, was recently introduced in Nepal. However, it has not been widely practiced, due mainly to lack of financial and technical support. This study determined an individual’s willingness to pay (WTP) for community IPM training. Determinants of WTP were identified; and sample average estimates, opportunity costs of training, and probability values were used to estimate WTP for a group of households. Estimated WTP revealed that individuals (...) were in favor of community IPM, hence it could be implemented with the support of local villagers. Community IPM demand functions showed that individuals’ knowledge and awareness of pesticide pollution are crucial for implementation. The annual welfare gained by providing five days community IPM training was calculated to be US $25.23 per household. (shrink)

The relationship between willingness to pay to reduce the probability of an adverse event and the degree of risk aversion is ambiguous. The ambiguity arises because paying for protection worsens the outcome in the event the adverse event occurs, which influences the expected marginal utility of wealth. Using the concept of downside risk aversion or prudence, we characterize the marginal WTP to reduce the probability of the adverse event as the product of WTP in the case of risk neutrality and (...) an adjustment factor. For the univariate case, the adjustment factor depends on risk aversion and prudence with respect to wealth. For the bivariate case, the adjustment factor depends on risk aversion and cross-prudence in wealth. (shrink)

Italian Sounding—i. e., the Italian appearance of a product or service brand irrespective of its country of origin—represents a global market phenomenon affecting a wide range of economic sectors, particularly the agro-food sector. Although its economic impact has been repeatedly stressed from different points of view, systematic scientific knowledge regarding its social–psychological bases is lacking. Three studies carried out in three different countries address this literature gap. Different consumer groups are targeted regarding major product categories pre-selected categories, which are the (...) major Italian food goods within the specific country according to piloting. In each study, the main independent variable has been manipulated by presenting real product images, whose “Italianness” degree is effectively manipulated by the main study variable across three or four levels. Main hypotheses are tested via a survey with the specific product images administered to samples in Italy, China, and the USA. Across the three studies, results show that Made in Italy products, compared to the other ones, are advantaged in terms of the main dependent variables: reputation profile, general reputation, attitude, and willingness to pay. Moreover, Italian Sounding products are endowed with corresponding significant advantages when compared to the Generic Foreign by non-Italian samples. Results reveal the specific social–psychological profile of Italian Sounding products in terms of either weaknesses or strengths when compared to both Made in Italy products and Generic Foreign ones, differently in the eyes of Italian and non-Italian consumers across different countries. Finally, consistently across the three studies, the extent to which a food product is perceived to be Italian increases consumers' WTP for that product, and this effect is consistently mediated by the product's reputation. (shrink)

In this paper an economics approach to assessing community values in health care priority setting is examined. The approach is based on the concept of ‘willingness to pay’ (WTP). Eighty two parents were interviewed with regard to three aspects of provision of child health services. For each aspect a choice of two courses of action was presented. Parents were asked which course of action they preferred and what was the maximum amount of money they would be prepared to pay for (...) this rather than their less preferred option. WTP responses are acceptable to the majority of respondents and appear to ‘behave’ in accordance witha priori expectations. A method of assessing the influence of ability to pay on preferences and WTP is outlined. Preferences and WTP do not appear to have been unduly distorted by ability to pay. Use of WTP data does have the potential to provide health care purchasers and providers with information on intensity as well as direction of the preferences of members of the community. (shrink)

The Real Food Challenge is a national student movement in the United States that aims to shift $1 billion—roughly 20%—of college and university food budgets across the country towards local, ecologically sound, fair, and humane food sources—what they call “real” food—by 2020. The University of Vermont was the fifth university in the U.S. to sign the Real Food Campus Commitment, pledging to shift at least 20% of its own food budget towards “real” food by 2020. In order to examine student (...) preference for “real” food on the UVM campus, we analyzed a survey of 904 undergraduate students that used contingent valuation to evaluate students’ willingness-to-pay for the “real” attribute. We found that a majority of students are willing to pay a positive premium for “real” food. Furthermore, we found that student characteristics and attitudes significantly influence WTP. Specifically, gender, residency, college, and attitudes about price and origin of food are significant predictors of WTP. (shrink)

Recent research on consumer social responsibility highlights the need to examine psychological drivers of environmentally-friendly consumption choices in a global context. This article investigates consumers’ willingness to pay more for environmentally-friendly products across 28 European Union countries, using a sample of 21,514 consumers. A multigroup structural equation modeling analysis reveals significantly different patterns and relationships, in how subjective knowledge about the product's environmental impact, environmental product attitudes, and the perceived importance of the products’ environmental impact influence consumers’ WTP more for (...) environmentally-friendly products across countries. The hypothesized model predicts WTP for 20 out of 28 countries and the findings show that a “one-size-fits-all” approach is inadequate in capturing the heterogeneity of EU consumers. Hosfstede's cultural dimensions of uncertainty tolerance and individualism explain differences in WTP for environmentally-friendly products across EU countries. Business, marketing communications, and policy making implications are discussed. (shrink)

Recent research on consumer social responsibility highlights the need to examine psychological drivers of environmentally‐friendly consumption choices in a global context. This article investigates consumers’ willingness to pay (WTP) more for environmentally‐friendly products across 28 European Union (EU) countries, using a sample of 21,514 consumers. A multigroup structural equation modeling analysis reveals significantly different patterns and relationships, in how (a) subjective knowledge about the product's environmental impact, (b) environmental product attitudes, and (c) the perceived importance of the products’ environmental impact (...) influence consumers’ WTP more for environmentally‐friendly products across countries. The hypothesized model predicts WTP for 20 out of 28 countries and the findings show that a “one‐size‐fits‐all” approach is inadequate in capturing the heterogeneity of EU consumers. Hosfstede's cultural dimensions of uncertainty tolerance and individualism explain differences in WTP for environmentally‐friendly products across EU countries. Business, marketing communications, and policy making implications are discussed. (shrink)

This research investigates the impact of corporate tax strategies on consumers’ corporate social responsibility perceptions, willingness to pay, and attitude toward the firm in two laboratory experiments in the United States and Germany. Using the Becker–DeGroot–Marschak incentive-compatible mechanism, which avoids a social desirability bias found in prior research, our results indicate only a minor indirect effect of corporate tax strategies on WTP by way of the mediator CSR perceptions. However, we find a strong effect on attitude toward the firm again (...) mostly mediated by CSR perceptions. In contrast to German consumers, U.S. consumers’ CSR perceptions of tax avoidance are independent of whether a strategy is likely accepted by the tax authorities. Overall, we conclude that CSR perceptions are highly relevant when it comes to consumer responses to tax avoidance. (shrink)

The main aim of this paper is to investigate the micro and macro predictors of Portuguese willingness to pay (WTP) more taxes to bolster funds channelled to the National Health Service (NHS). An online questionnaire was used to collect data from 584 Portuguese citizens. The statistical analysis was performed through the application of logistic regressions. The research shows that willingness to support increasing taxes depended on socioeconomic, behavioural, and psychological factors. The WTP more taxes to finance the NHS were associated (...) with younger ages, life satisfaction and dispositional optimism, satisfaction with the NHS performance, current perceived risk exposure, and risk orientation. Identifying and understanding the main influencing factors associated with WTP more taxes for NHS is essential to assist policy-makers in developing healthcare reforms. Decision-makers may take this opportunity to improve the NHS since those who ultimately benefit from the measures can provide an additional source of health financing. (shrink)

Several studies on ethical and social food attributes have shown that consumers, especially in developed countries, are willing to pay a price premium for fair trade foods products. However, there is a scant literature on how consumers’ preferences and willingness to pay for fair trade products are affected by the presence of other ethical food attributes. To fill this gap, a choice experiment was conducted in Scotland, the Netherlands and France to assess consumers’ preferences and WTP for ethical attributes, i.e., (...) fairtrade, organic, and lower carbon footprint, of bananas and to find out whether this ethical food attributes are competing in real markets. The results showed that in the three countries consumers are willing to pay a price premium for the three ethical food attributes. The results showed that in the current market situation these ethical foods are not generally competing against each other. Nonetheless, they are likely to become competing for consumer’s money at least when: the price of organic foods is decreased significantly, the price for fairtrade food products is set higher than consumers’ WTP, and bananas labeled as having lower carbon footprint are made available in retail stores and sold at a price lower than consumers’ WTP. (shrink)

This study analyzed consumers' willingness to pay for non-pirated computer software and examined how attitudes toward intellectual property rights and perceived risk affect WTPs. Two commonly used software products, Microsoft Windows and Microsoft Office, were used in the study as objects to reveal consumer assessed values. A consumer survey was administered in Taiwan and the total valid samples were 799. Respondents in this study included students from senior high schools, colleges, and graduate schools, and general consumers who were no longer (...) full-time students. The estimated average WTP for Windows was USD 58.55 and for Office was USD 53.49, much lower than the respective suggested retail prices in the market. Social norms had strong positive influences on willingness-to-pay for software products. The prosecution risk did not significantly increase WTPs for software products due to the reason that individuals who used pirated software were not at a high risk of being prosecuted. Performance risk was positively correlated to WTPs for software products. The respondents segmented into the low-WTP cluster were more likely to use pirated software than those in the high-WTP segment. Source reliability, legitimacy, technical support, and customer service were emphasized in decisions of respondents in the high-WTP segment and could be used in marketing strategies. (shrink)

This study analyzed consumers' willingness to pay for non-pirated computer software and examined how attitudes toward intellectual property rights and perceived risk affect WTPs. Two commonly used software products, Microsoft Windows and Microsoft Office, were used in the study as objects to reveal consumer assessed values. A consumer survey was administered in Taiwan and the total valid samples were 799. Respondents in this study included students from senior high schools, colleges, and graduate schools, and general consumers who were no longer (...) full-time students. The estimated average WTP for Windows was USD 58.55 and for Office was USD 53.49, much lower than the respective suggested retail prices in the market. Social norms had strong positive influences on willingness-to-pay for software products. The prosecution risk did not significantly increase WTPs for software products due to the reason that individuals who used pirated software were not at a high risk of being prosecuted. Performance risk was positively correlated to WTPs for software products. The respondents segmented into the low-WTP cluster were more likely to use pirated software than those in the high-WTP segment. Source reliability, legitimacy, technical support, and customer service were emphasized in decisions of respondents in the high-WTP segment and could be used in marketing strategies. (shrink)

Third generation prospect theory is a theory of choices and of judgments of highest buying and lowest selling prices of risky prospects, i.e., of willingness to pay and willingness to accept. The gap between WTP and WTA is sometimes called the “endowment effect” and was previously called the “point of view” effect. Third generation prospect theory combines cumulative prospect theory for risky prospects with the theory that judged values are based on the integration of price paid or price received with (...) the consequences of gambles. In TGPT, the discrepancy between WTP and WTA is due to loss aversion-losses have greater absolute utility than gains of the same value. TGPT was developed independently of similar developments by Birnbaum and Zimmermann :145–187, 1998) and Luce. This paper reviews theoretical and empirical findings, to show that TGPT fails as a descriptive model of both choices and judgments. Evidence refutes three implications of TGPT, but they are consistent with configural weight models in which loss aversion is not needed to describe the results. In the configural weight models, buyers place greater weight on lower consequences, attributes or estimates of value compared to sellers, who place greater configural weight on higher aspects of an object or prospect. (shrink)

Applications of willingness to pay have shown the difficultly to discriminate between various options. This reflects the problem of embedding in both its specific sense, of options being nested within one another, and its more general sense, whereby respondents cannot discriminate between close substitutes or between more-disparate rivals for the same budget. Furthermore, high proportions of reversals between WTP-value and simple preference based rankings of options are often highlighted. Although an incremental WTP approach was devised to encourage more differentiated answers (...) and a higher degree of consistency among respondents, a theoretical basis for this approach has not been elucidated, and there is little evidence to show that this approach might indeed achieve greater consistency between explicit and implicit rankings inferred from WTP values. We address both these issues. Following our theoretical exposition, standard and incremental approaches were compared with explicit ranking in a study assessing preferences for different French emergency care services. 280 persons, representative of the French adult population, were interviewed. Half received the incremental version, the other half the standard version. Results suggest that the incremental approach provides a ranking of options fully in line with explicit ranking. The standard approach was reasonably consistent with explicit ranking but proved unable to differentiate between the five most preferred providers, as predicted by theory. Our findings suggest that the incremental approach provides results which can be used in priority-setting contexts. (shrink)

By means of minimal assumptions on the individual preferences, I show that the Willingness To Pay (WTP) for both a FSD and SSD reduction of risk is the sum of a mean effect, a pure risk effect and a wealth effect. As a result, the WTP of a risk-averse decision maker may be lower than the WTP of a risk-neutral one, for a large class of individual preferences’ representation and a large class of risks.

Financial sustainability of protected areas is one of the main challenges of management. Financial self-sufficiency is an important element in improving conservation effort in these areas. This study seeks to review best practices in recreational fee systems in different countries and to find a relevant entry fee for a wildlife sanctuary in Malaysia. The revenue of the National Elephant Conservation Center (NECC) in Kuala Gandah, Malaysia, comes from several sources, including the national government, but all these budgetary sources are strained (...) by tighter public budgets and greater demands. The present study investigates the introduction of visitor entrance fees to supplement an otherwise inadequate budget for supporting the operational costs of the sanctuary. Factor analysis and a double-bounded contingent valuation method were combined to estimate tourists' willingness to pay (WTP) the proposed entrance fee. Factor analysis showed that respondents' motivation to support the NECC with user fees is conditioned by their direct experiences with elephants, their satisfaction with NECC's educational programs and services, and other experiences it gives to users. The WTP model considered respondents' four motivation factors with their sociodemographic characteristics. Since NECC visitors arrive from both within and outside the country, this study suggests to center managers a two-tier fee structure (residents vs. nonresidents of Malaysia), based upon mean WTP estimates. This study further suggests that revenue from such an entrance fee for NECC could support the Center's management and development costs. © 2015 Elsevier B. (shrink)

Several studies on ethical and social food attributes have shown that consumers, especially in developed countries, are willing to pay a price premium for fair trade foods products. However, there is a scant literature on how consumers’ preferences and willingness to pay for fair trade products are affected by the presence of other ethical food attributes. To fill this gap, a choice experiment was conducted in Scotland, the Netherlands and France to assess consumers’ preferences and WTP for ethical attributes, i.e., (...) fairtrade, organic, and lower carbon footprint, of bananas and to find out whether this ethical food attributes are competing in real markets. The results showed that in the three countries consumers are willing to pay a price premium for the three ethical food attributes. The results showed that in the current market situation these ethical foods are not generally competing against each other. Nonetheless, they are likely to become competing for consumer’s money at least when: the price of organic foods is decreased significantly, the price for fairtrade food products is set higher than consumers’ WTP, and bananas labeled as having lower carbon footprint are made available in retail stores and sold at a price lower than consumers’ WTP. (shrink)

This article examines quantitatively the determinants of purchase decisions based on corporate social responsibility (CSR), adopting a hierarchical conceptual model of decision making where the key factors are personal concern, information availability and financial considerations. We use best–worst methods to assess consumer priorities (personal concern) for CSR activities in milk production; and elicit consumer interpretation of four labels (organic, Validus, Colorado Proud and rBST free) in terms of CSR and other outcomes (information availability). We then elicit willingness to pay (WTP) (...) for the labels (financial considerations), and estimate regression models to determine how predictive each label perceptual profile is of WTP for milk. Animal welfare and sustainable agricultural practices are the most important activities, and milk labels do convey CSR-related messages. With the exception of the pair animal welfare-Validus, the link between CSR messages and WTP is tenuous. The discussion emphasizes the central role of each label’s perceptual profile in triggering product differentiation among consumers. (shrink)

The use of cost-benefit analysis (CBA) in environmental decision-making and the contingent valuation (CV) technique as input into traditional CBA to elicit environmental values in monetary terms has stimulated an extensive debate. Critics have questioned the appropriateness of both the method and the technique. Some alternative suggestions for the elicitation of environmental values are based on a social process of deliberation. However, just like traditional economic theory, these alternative approaches may be questioned on their implicit value judgements regarding the legitimacy (...) of the social-political organisation of the process of value elicitation. Instead of making assumptions a priori, research efforts should be focused on the processes by which actual public attitudes and preferences towards the environment can best be elicited and fed into environmental or other public policy decision-making. In the study presented in this paper, support was found for both the individual WTP based approach and a participatory social deliberation approach to inform the environmental decision-making process, suggesting that a combination of both approaches is most appropriate. (shrink)

Benefit-cost analysis is typically defined as an implementation of the potential Pareto criterion, which requires inclusion of any impact for which individuals have willingness to pay. This definition is incompatible with the exclusion of impacts such as rights and distributional concerns, for which individuals do have WTP. I propose a new definition: BCA should include only impacts for which consumer sovereignty should govern. This is because WTP implicitly preserves consumer sovereignty, and is thus only appropriate for ‘sovereignty-warranting’ impacts. I compare (...) the high cost of including non-sovereignty-warranting impacts to the relatively low cost of excluding sovereignty-warranting impacts. (shrink)

We obtain an array of consistency results concerning trees and stationary reflection at double successors of regular cardinals $\kappa $, updating some classical constructions in the process. This includes models of $\mathsf {CSR}(\kappa ^{++})\wedge {\sf TP}(\kappa ^{++})$ (both with and without ${\sf AP}(\kappa ^{++})$ ) and models of the conjunctions ${\sf SR}(\kappa ^{++}) \wedge \mathsf {wTP}(\kappa ^{++}) \wedge {\sf AP}(\kappa ^{++})$ and $\neg {\sf AP}(\kappa ^{++}) \wedge {\sf SR}(\kappa ^{++})$ (the latter was originally obtained in joint work by Krueger and (...) the first author [9], and is here given using different methods). Analogs of these results with the failure of $\sf {SH}(\kappa ^{++})$ are given as well. Finally, we obtain all of our results with an arbitrarily large $2^\kappa $, applying recent joint work by Honzik and the third author. (shrink)

Negative people/wildlife interaction has raised public interest in wildlife population control. We present a contingent valuation study of alternative deer control measures considered for Hilton Head Island, SC. Lethal control usig sharpshooters and nonlethal immuno-contraception techniques are evaluated. A mail-back survey was used to collect resident willingness-to-pay information for reduced deer densities and consequent property damage. Residents are unwilling to spend more for the nonlethal alternative. The estimated WTP appears theoretically consistent as increasing levels of abatement for both lethal and (...) nonlethal alternatives demonstrate diminishing marginal benefits. Over 60% of respondents bid zero regardless of control measure, suggesting a referendum would fail. However, only half of these zero bidders expressed no problem with deer, while the other half bid zero because of distaste for the control alternative, safety concerns, or doubt about effectiveness. Inclusion of these responses as legitimate zero bids depressed mean WTP estimates from 22 to 31%. (shrink)