Initial endowment effects in Multi-Unit Vickrey auctions

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How consumers in the UK and Spain value the coexistence of the claims low fat, local, organic and low greenhouse gas emissions

This study investigates the substitution and complementary effects for beef mince attributes drawing on data from large choice experiments conducted in the UK and Spain. In both countries, consumers were found to be willing to pay a price premium for the individual use of the labels “Low Fat” (UK: €3.41, Spain: €1.94), “Moderate Fat” (UK: €2.23, Spain: €1.57), “Local” (UK: €1.54, Spain: €1.61), “National” (UK: €1.33, Spain: €1.37), “Organic” (UK: €1.02, Spain: €1.09) and “Low Greenhouse Gas Emissions (GHG)” (UK: €2.05, Spain: €0.96). The results showed that consumers in both countries do not treat desirable food attributes as unrelated. In particular, consumers in Spain are willing to pay a price premium for the use of the labels “Local”, “Organic” and “Low GHG” on beef mince that is also labelled as having low or moderate fat contentThis research was funded by the Scottish Government as part of the 2016–2021 Research Program on Food Security (Workpackage 3.3)Postprint (published version

Comparing results of ranking conjoint analyses, best–worst scaling and discrete choice experiments in a nonhypothetical context

This study assesses the comparability of discrete choice experiment (DCE), ranking conjoint analysis (RCA) and multiprofile best–worst scaling (BWS) in a nonhypothetical context in terms of estimated partworths, willingness to pay (WTP), response consistency and external validity. Overall, the results suggest that: (i) the conjoint analysis formats that were used in this study provide similar estimated WTP, but different estimated partworths and computed external validityPeer ReviewedPostprint (updated version

What are domestic apples worth? Hedonic responses and sensory information as drivers of willingness to pay

The effects of written information of key sensory characteristics of apple cultivars on hedonic ratings and willingness to pay (WTP) were measured in an experimental auction. Participants (n = 118, 95F, 23M, mean age 37y.) rated, in three subsequent rounds, pleasantness and WTP based on (1) appearance only (n = 25), (2) appearance, written information and tasting (n = 44), or (3) appearance, tasting and written information (n = 49). Four domestic cultivars were described as medium sour and crispy ('Amorosa'), sour and medium crispy ('Konsta'), medium sweet and medium crispy ('Lobo') and sweet and medium crispy ('Tobias'). The differences between the cultivars in pleasantness and WTP were minimal when the evaluation was based on appearance only. The effect of tasting after visual inspection was positive in three cultivars and negative in one ('Konsta'). Written information after tasting did not affect pleasantness or WTP. For one cultivar ('Tobias'), information given before tasting created expectations that were not fulfilled, thus tasting decreased hedonic ratings and WTP. Mean WTP was 2.36 euro/kg. When pleasantness increased by one point, WTP increased by 0.31-0.45 euro/kg. Regression models showed that pleasantness explained 38-55% of WTP. Respondents who reported consuming domestic apples more often than once a week had 0.52-0.74 euro/kg higher WTP than those who consumed them less frequently, suggesting that familiarity with the product increases WTP. Results indicate that both written information and tasting contribute to the ratings of pleasantness and WTP. (C) 2015 Elsevier Ltd. All rights reserved.Postprint (published version

Retailers’ promotions and the demand for sugary products in Scotland

Scotland has one of the highest rates of obesity in OECD countries and its diet has been pointed out as an important factor behind it. Retailers also have been pointed out as fostering unhealthy consumption through their promotional activity. This paper explores the importance of retail promotions on sugary food categories (i.e., take home confectionery, frozen confectionery and ice cream, and non-diet soft drinks) covering the period 2006-2011 and using home scanner panel data. Results indicate that consumers respond to promotions on the category and families with children have significantly increased their purchases of sugary products

The demand for dairy products in Malawi

In this paper a multi-stage almost ideal demand system with censoring was estimated to assess Malawians’ demand for six dairy products (viz. fresh milk, powdered milk, margarine and butter, chambiko, yogurt and cheese). We found that the consumption of dairy products depended on whether the household was rural or urban, the region of the country (viz. North, Centre, South) and the household poverty status. The results also show that the demand for fresh and powdered milk, butter and margarine, cheese and yogurt was price inelastic, although the demand for chambiko was price elastic. Fresh milk and powdered milk were found to be gross substitutes and the consumption of milk was found to increase with household income

Factors Explaining the Consumers' Willingness-to-Pay for a "Typical" Food Product in Spain: Evidence from Experimental Auctions

A random nth price experimental auction is used to elicit the willingness to pay (WTP) a premium for the locally produced and high quality white bean "Mongeta Ganxet" (MG) (Catalonia - Spain). Moreover, we are interested in testing the effect on the WTP of providing different pieces of information to participants. Results indicate that the provision of information on organoleptic, nutritional and cooking characteristics of the MG as well as their tasting has increased participants' WTP. Also, providing reference prices of substitutive products (both conventional and alternative high quality white beans) positively stimulates the premium participants are willing to pay for the MG. Finally, the level of consumption, the degree of knowledge about the product and the participants' previous experience increase the purchasing intention of the MG

Assessing consumers’ willingness to pay for different units of organic milk: evidence from multi-unit auctions

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Retailers' Promotions: What Role Do They Play in Household Food Purchases by Degree of Food Access in Scotland?

A poor diet fostered by a rapid increase in the supply of affordable processed food has been mentioned as one of the major contributors to obesity and non-communicable diseases. Associated to increases in affordability are the promotions used by retailers. Their impact is controversial because promotions have been pointed to as a key factor in expanding the expenditure on caloric-rich processed foods, but they are also used by retailers for selling fruit and vegetables. This article focuses on the effect that retailers’ promotions have on the Scottish diet. In this respect, Scotland is an interesting case because it has one of the worst overweight and obesity records for both adults and children within the OECD countries. Most studies on the effects of promotions have been based on a single or reduced number of food products. Thus, the purpose of this paper is to analyse the overall effect of promotions on the Scottish food and drink purchases. This is achieved by analysing a representative scanner panel dataset for the period 2006-13. The methodology consists of exploring the impact of promotions on food expenditure and allocation, using for the latter an augmented with promotions linear AIDS model, while controlling by food access area, which was approximated by deprivation area. Results indicate that promotions seem to have differentiated effects by category and similar results for all the accessibility areas