Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers
A split-valuation method is developed and implemented to elicit the willingness to pay to consume- or avoid consuming- a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The re...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
1993-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30963 |
| _version_ | 1818032811955716096 |
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| author | Brian L. Buhr Dermot J. Hayes Jason F. Shogren James B. Kliebenstein |
| author_facet | Brian L. Buhr Dermot J. Hayes Jason F. Shogren James B. Kliebenstein |
| author_sort | Brian L. Buhr |
| collection | DOAJ |
| description | A split-valuation method is developed and implemented to elicit the willingness to pay to consume- or avoid consuming- a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The results show that the method can be used to successfully value a good ambiguous quality. Our application reveals that for a sample of students at a midwestern land-grant institution, the average respondent is willing to pay a premium for meat produced with the use of a genetically engineered growth enhancer that has 30% to 60% fewer calories and is 10% to 20% leaner. |
| first_indexed | 2024-12-10T06:13:19Z |
| format | Article |
| id | doaj.art-2eb5a7e6c6a64213977a9196e142e579 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-10T06:13:19Z |
| publishDate | 1993-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-2eb5a7e6c6a64213977a9196e142e5792022-12-22T01:59:30ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851993-12-0118217518410.22004/ag.econ.3096330963Valuing Ambiguity: The Case of Genetically Engineered Growth EnhancersBrian L. BuhrDermot J. HayesJason F. ShogrenJames B. KliebensteinA split-valuation method is developed and implemented to elicit the willingness to pay to consume- or avoid consuming- a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The results show that the method can be used to successfully value a good ambiguous quality. Our application reveals that for a sample of students at a midwestern land-grant institution, the average respondent is willing to pay a premium for meat produced with the use of a genetically engineered growth enhancer that has 30% to 60% fewer calories and is 10% to 20% leaner.https://ageconsearch.umn.edu/record/30963ambiguityexperimental economicsgrowth hormonesvaluationvickrey auction |
| spellingShingle | Brian L. Buhr Dermot J. Hayes Jason F. Shogren James B. Kliebenstein Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers Journal of Agricultural and Resource Economics ambiguity experimental economics growth hormones valuation vickrey auction |
| title | Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers |
| title_full | Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers |
| title_fullStr | Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers |
| title_full_unstemmed | Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers |
| title_short | Valuing Ambiguity: The Case of Genetically Engineered Growth Enhancers |
| title_sort | valuing ambiguity the case of genetically engineered growth enhancers |
| topic | ambiguity experimental economics growth hormones valuation vickrey auction |
| url | https://ageconsearch.umn.edu/record/30963 |
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