Showing papers by "Gregory Colson published in 2009"

Consumer Preferences for Country-Of-Origin, Geographical Indication, and Protected Designation of Origin Labels

Abstract: Motivated by the recognition that geography is often correlated with and/or an important determinant of the overall quality of agricultural products, consumer groups, industry representatives, and domestic and trade representatives have increasingly considered the potential role of geographical origin labels as consumer information and marketing tools. We investigate whether consumers recognize and value the informational content of a variety of nested geographical origin labels. In particular, this study disentangles and assesses three nested types of origin labels: country of origin (COOL), geographical indications (GI), and PDO/PGI. We find that, within the context of a high quality valueadded commodity such as extra virgin olive oil, consumers' willingness to pay varies across different countries of origin, and that within a country consumers have a greater willingness to pay for GI-labeled than non-GI labeled products. We also find evidence that consumers value PDOs more than PGIs, but the result is not as strong as that found for GI versus non-GI. Overall, our findings support the recent surge in interest by both developed and developing nations in reaching an agreement for stricter and more widespread protection of GIs within ongoing WTO discussions and harnessing them as marketing tools for expanding shares in export markets.

A return of the threshing ring? Motivations, benefits and challenges of machinery and labor sharing arrangements

Abstract: Cooperative approaches provide an alternative for small- and medium-sized producers to obtain the efficiencies of large farming operations and remain competitive in an increasingly concentrated agricultural industry. This article examines the motivation and effectiveness of equipment and labor sharing arrangements in the Midwestern US. Case study evidence shows that in addition to cost savings, access to skilled, seasonal labor is an important motivation for farm-level cooperation. Key factors identified for successful cooperative agreements include compatibility of operations and members' willingness to communicate and adapt. Sharing resources is found to improve farm profitability, efficiency and farmers' quality of life.

Improving nutrient content through genetic modification: Evidence from experimental auctions on consumer acceptance and willingness to pay for intragenic foods

Abstract: After more than a decade of experience in the global marketplace, genetically modified (GM) foods continue to be controversial. Early GM traits were obtained by transferring genes across species, largely from soil bacteria, and this transgenic nature is one dimension of consumer resistance. Recently, breakthroughs have occurred using intragenic bioengineering where genes are moved long distances within specie and without antibiotic markers. These new intragenic bioengineering methods offer the potential for new commercial crop varieties with traits of direct value to consumers (e.g., enhanced nutrition) without reliance on outside foreign genetic material.To assess the potential market for new intragenic foods, a series of multiple-round random nth-price experimental auctions were conducted in the spring of 2007 on randomly chosen adult consumers with randomized food label and information treatments. Using the data collected through the experimental auctions, this dissertation assesses several issues including: (1) consumers' willingness to pay (WTP) for GM food products with and without enhanced antioxidant and vitamin C levels, (2) the impact of controversial and verifiable information on consumers' WTP, (3) the public good value of verifiable information about GM, (4) the welfare impact of alternative labeling policies for GM foods, and (5) the impact of outside-the-auction consumer held product inventories on bids in food experiments.Results indicate that consumers are willing to pay significantly more for intragenic GM vegetables with enhanced nutrition than for a conventional product. This suggests that there is potential for new intragenic foods to find acceptance among consumers and that the food industry for the first time potentially has an incentive to voluntarily label GM foods as GM. The consumer welfare gains from labeling policies that differentiate intragenic and transgenic are quantified. However, the information available to consumers when making product purchase decisions is shown to have a significant impact on private valuations, thus potentially eroding demand for intragenic foods. Verifiable information from independent third-party organizations is shown to have value to consumers through enabling more informed product choices.

Demand Curve Effects in Experimental Auctions: The Effect of Quantity Already Owned

Abstract: Experimental auctions have become an increasingly common mechanism for eliciting consumers' willingness to pay (WTP). In part, the increased prominence of experimental auctions derives from their theoretically demand revealing properties. That is, unlike a hypothetical survey, participants have a dominant strategy to truthfully reveal their preferences through their bids. Comparisons between value estimates from experimental auctions have shown this is indeed the case (e.g., see Fox et al. 1998 and List 2001). While experimental auctions are demand revealing in theory, there has been much attention in the literature focusing on the “proper” design of auctions. There has been discussion regarding whether participants should bid on products in repeated rounds with posted prices (e.g., List and Shogren 1999 and Rousu and Corrigan 2006b), the effect of endowing participants with products (e.g., Corrigan and Rousu 2006a), and the impact of laboratory versus market environments (e.g., Lusk and Fox 2003). Across studies, one area where most experimental auction methods are consistent is in dealing with potential substitution or negatively sloped demand-curve effects. These effects occur when participants' bids are affected through the potential of obtaining multiple units of a product during the auction. Researchers usually prevent this possibility by having only one round of bidding (on one unit of a commodity) in the auction serve as the "binding" round where participants can win products (e.g., Dickinson and Bailey 2002 and Alfnes and Rickertsen 2003). While researchers are careful to control for demand curve effects within an auction, previous studies do not control for demand curve effects from outside the auction. As previously mentioned, a demand-revealing auction theoretically elicits a

Consumer preferences for country-of-origin, geographical indication, and protected designation of origin labels

Abstract: Motivated by the recognition that geography is often correlated with and/or an important determinant of the overall quality of agricultural products, consumer groups, industry representatives, and domestic and trade representatives have increasingly considered the potential role of geographical origin labels as consumer information and marketing tools. We investigate whether consumers recognize and value the informational content of a variety of nested geographical origin labels. In particular, this study disentangles and assesses three nested types of origin labels: country of origin (COOL), geographical indications (GI), and PDO/PGI. We find that, within the context of a high quality value-added commodity such as extra virgin olive oil, consumers' willingness to pay varies across different countries of origin, and that within a country consumers have a greater willingness to pay for GI-labeled than non-GI labeled products. We also find evidence that consumers value PDOs more than PGIs, but the result is not as strong as that found for GI versus non-GI. Overall, our findings support the recent surge in interest by both developed and developing nations in reaching an agreement for stricter and more widespread protection of GIs within ongoing WTO discussions and harnessing them as marketing tools for expanding shares in export markets.