Valuing Conflicting Public Information About a New Technology: The Case of Irradiated Foods

Scientists and advocates can disagree on the value of new products or technologies, such as growth hormones, genetically modified organisms, and food irradiation. Both sides of the debate disseminate information to the public hoping to influence public opinion. This study assesses the economic value of both pro and anti public information using food irradiation as a case study. The value of information sources is estimated in isolation and in combination. In isolation, the results indicate each set of information has value. In combination, only the anti-irradiation information is found to have net positive value (persuading some consumers to purchase non-irradiated products). Pro-irradiation information worked to decrease the value of anti-irradiation information by 68% per person.experimental auctions, irradiation, value of information, Research and Development/Tech Change/Emerging Technologies,

Estimating the Value Consumers Derive from Product Labeling

Firms spend billions of dollars annually on new product and label designs in order to attract and retain customers. The issue of labeling is also important to government agencies and nonprofit labeling organizations. For example, the U.S. Food and Drug Administration has an organizational body in its Office of Nutritional Products that deals with issues of food and dietary supplement labeling. The U.S. Department of Agriculture’s Food Safety and Inspection Service also deals with labeling through its Labeling and Consumer Protection Staff. These government agencies spend millions of dollars trying to ensure that food labels adequately inform consumers. One issue that has not been examined is the welfare difference to consumers from alternative labeling schemes/regulations. It seems likely that different labels would differ in effectiveness at informing consumers.

Do Practice Rounds Bias Experimental Auction Results?

Consumer/Household Economics,

Consumer Preferences for Fair Trade Foods: Implications for Trade Policy

Food Consumption/Nutrition/Food Safety, International Relations/Trade, Q18, Q51 Effects,

Posted Prices and Bid Affiliation: Evidence from Experimental Auctions

In most experimental auctions, researchers ask participants to bid on the same item in multiple potentially binding rounds, posting the price submitted by the top bidder or bidders after each of those rounds. If bids submitted in later rounds are affiliated with posted prices from earlier rounds, this practice could result in biased value estimates. In this article we discuss the results of an experiment designed explicitly to test whether posted prices affect bidding behavior. We find that for familiar items, high posted prices lead to increased bids in subsequent rounds. Our results have implications for researchers conducting experimental auctions.Experimental Auctions, Posted Prices, Affiliation

The Value of Countermarketing Information to Smokers: Evidence from Field Auctions

Information about cigarettes can help smokers come to an informed decision about what cigarettes to purchase. Countermarketing information, which helps counter potentially biased marketing information, can fill this void, but little is known about the value of this information to smokers. In this paper, we use data from experimental auctions to estimate the value of countermarketing information to smokers. We find that countermarketing information has significant value to smokers who have been exposed to marketing information from tobacco companies, but we find no evidence it provides value to smokers not exposed to marketing informationfield auctions, value of information, cigarettes, Consumer/Household Economics, Health Economics and Policy,

The Effect of Initial Endowments in Experimental Auctions

We report the results of an experiment designed to test whether initial endowments affect value estimates elicited from experimental auctions. Comparing bids for one unit of a good, two units of a good, and a second unit of a good when endowed with the first unit, we find that willingness to pay for the second unit of a good is, on average, as much as 75% higher when endowed with the first unit. We go on to advance two theories that could potentially reconcile our results with neoclassical consumer theory.Endowment Effect, Experimental Auctions, Reciprocity, Top-Dog Effect

AJAE Appendix: Posted Prices and Bid Affiliation: Evidence from Experimental Auctions

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, Volume 88, Number 4, November 2006.Demand and Price Analysis,

On Maximum Margin Hierarchical Classification

We present work in progress towards maximum margin hierarchical classification where the objects are allowed to belong to more than one category at a time. The classification hierarchy is represented as a Markov network equipped with an exponential family defined on the edges. We present a variation of the maximum margin multilabel learning framework, suited to the hierarchical classification task and allows efficient implementation via gradient-based methods. We compare the behaviour of the proposed method to the recently introduced hierarchical regularized least squares classifier as well as two SVM variants in Reuter's news article classification