Willingness to Pay for Imported Beef and Risk Perception: An application of Individual-Level Parameter

Abstract

The controversy surrounding the Mandatory Country-of-Origin Labeling (COOL) has attracted research attentions. A number of studies have reported consumers are willing to pay more for beef labeled with U.S. origin versus beef from unknown or other origins. Despite that, relatively little is known about what motivates consumers’ preference for origin-labeled food products (Lusk et al 2006). Using Individual-Level Parameters following a mixed logit model, we found that U.S. consumers were willing to pay significantly less for imported steak from Australia and Canada compare to U.S. steak. Further, we found that the negative willingness to pay is associated strongly with consumers’ perception of food safety on the exporting country.beef, country of origin, mixed logit, individual-level parameters, stated choice experiment, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Marketing, Q13, Q18,