Consumers’ responses to food fraud risks: an economic experiment

Chloe S 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.
Original languageEnglish
Pages (from-to)942–969,
Number of pages28
JournalEuropean Review of Agricultural Economics
Volume49
Issue number4
Early online date07 Jul 2021
DOIs
Publication statusPublished - Sept 2022

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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