Consumers’ responses to food fraud risks: an economic experiment

Chloe McCallum*, Simone Cerroni, Daniel Derbyshire, W George Hutchinson, Rodolfo Nayga Jr.

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

This artefactual field experiment explores consumers’ willingness-to-pay (WTP) price
premiums for fish products to avoid the risk and uncertainty of purchasing inauthentic
produce. The influence of subjective probabilistic beliefs, risk and ambiguity preferences is investigated. Participants’ WTP is elicited using experimental auctions, while
behavioural factors are elicited using incentivised and incentive-compatible methods:
the quadratic scoring rule and multiple price lists. Results show that consumers are
willing to pay a premium to avoid food fraud and purchase an authentic fish product. This premium is higher under uncertainty than risk, likely driven by ambiguity
preferences which affect consumers’ purchasing under uncertainty.
Keywords: authenticity, food fraud, risk and ambiguity preferences, willingness to
pay, experimental auctions.

JEL classification: C91, D12, D81, Q13
Original languageEnglish
Number of pages28
JournalEuropean Review of Agricultural Economics
DOIs
Publication statusPublished - 07 Jul 2021

Keywords

  • food authenticity
  • food fraud
  • risk,ambiguity
  • preferences
  • willingness to pay
  • experimental auctions

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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