BOOK REVIEW: Sakiko Fukuda-Parr, ed., The Gene Revolution: GM Crops and Unequal Development. London: Earthscan, 2007, xxx + 248 pp., $42.50 paperback, ISBN 978-1-84407-409-9.

Agribusiness,

Comparing Parts with the Whole: Willingness to Pay for Pesticide-Free, Non-GM, and Organic Potatoes and Sweet Corn

Auction experiments were used to investigate demand relationships and willingness to pay (WTP) for four versions of potatoes and sweet corn—conventional, organic, and two parts of organic: no pesticides and non-genetically modified (non-GM). Elasticities showed strong and asymmetric substitute relationships between organic and its parts. Combined premiums of the parts were not significantly different than the whole organic premium, suggesting WTP for the attributes are not additive. A two-stage heteroskedastic tobit model found significant WTP for each part dependent on demographics and beliefs about conventional versions. Results suggest segments for parts of organic could be established alongside the whole.auction experiments, organic, pesticides, potatoes, sweet corn, willingness to pay, Demand and Price Analysis, Livestock Production/Industries,

EXPERIMENTAL INVESTIGATION OF INTERACTIONS IN WILLINGNESS TO PAY FOR CERTIFIED ORGANIC AND NON-GENETICALLY MODIFIED FOODS

Consumer/Household Economics,

Factor and Cluster Analysis of Willingness to Pay for Organic and Non-GM Food

A large segment of consumers appear to value niche products including organic, “non-GM,†“pesticide-free,†and “no antibiotics used†more in fresh products than in processed. About ten percent of the respondents were especially interested in non-GM products. These consumers feel that GM labeling is important, but felt that other types of food labels were relatively unimportant. The non-GM audience defied easy demographic profiling. Data were collected by both surveys and experimental auctions, with factor analysis and cluster analysis used to interpret the data. The survey and experimental auction data yielded different willingness-to-pay values but showed similar patterns of consumer preferences.Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,

Consistency of Willingness to Pay and Preferences in Auction Experiments

Agricultural and Food Policy,

Confounded by the Field: Bidding in Food Auctions When Field Prices Are Increasing

Auction experiments are commonly used to determine consumers’ willingness to pay for various food items. While their non-hypothetical nature is a positive, market substitutes create a probable confounding of bids by field prices. This study examines the influence of field prices on bids for four foods in two versions by conducting auctions before and after large price increases in 2007. Results show that bids were capped at given field prices and were significantly higher in sessions conducted after store prices increased. Percentage premiums, however, were not significantly different across sessions, suggesting that effects of field prices could be reduced. Overall, researchers must be conscious of how field prices affect bids.auction experiments, field prices, organic, bidding, Consumer/Household Economics, Institutional and Behavioral Economics, Marketing,

The Impact of Message Framing on Organic Food Purchase Likelihood

A consumer survey and Tobit analysis were used to determine the effect of message framing and other factors on self-reported organic food purchase likelihood. Negative framing, which emphasizes the possible negative consequences of conventional agricultural techniques, led to a “"boomerang effect”" that resulted in lowered purchase likelihood of organic food by consumers with high trust in food safety. Consumers with significantly higher purchase likelihood had high perceived risk from pesticides and high prior knowledge about organic methods. African Americans and those with less than a high school education had lower purchase likelihood.Marketing,

PACKAGING OF ORGANIC AND CONVENTIONAL PRODUCTS - A COMPARISON

Agribusiness,

The next new thing: curiosity and the motivation to purchase novel products

Consumers motivated by curiosity may enter a ‘hot' state when confronted with a desirable novel product and be unable to judge their future actions in a ‘cold'' state. To test this, a multiple week auction experiment was conducted using an opportunity to rent an MP3 player. Subjects initially recorded non-binding bids to rent the player for both the first and second weeks. The only significant differences between these and actual bids were with week one renters bidding lower in week two. Results showed that people have difficulty forecasting their future value of a product, especially when it is one about which they are curious or eager to try. Even consumers with a higher opinion of the product after use had a lower valuation of it after they gained experience with it.

Differences in WTP and Consumer Demand for Organic and Non-GM Fresh and Processed Foods

Auction experiments were used to examine demand and premium differences between organic, non-GM (genetically modified), and conventional versions for two pairs of fresh and processed foods. Results showed processed foods had greater substitutability among the versions than fresh products. Conventional versions were the least price sensitive, while non-GM versions were the most sensitive. Significant premium differences were found between fresh and processed foods for sweet corn and tortilla chips, but not for potatoes and potato chips. Results from random effects models mirrored these findings. In general, the extent of premium differences between fresh and processed versions appears dependent on the food product.auction experiments, willingness to pay, organic, non-GM, fresh, processed food, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Marketing,