Ulrich B. Morawetz

Bio: Ulrich B. Morawetz is an academic researcher from University of Natural Resources and Life Sciences, Vienna. The author has contributed to research in topics: Contingent valuation & Willingness to pay. The author has an hindex of 9, co-authored 26 publications receiving 386 citations.

Improving the Use of Experimental Auctions in Africa: Theory and Evidence

Abstract: Experimental auctions have not been widely used in Africa. However, auctions are important tools for evaluating new products and technologies. To increase the quality of these experiments, we explore an alternative first-price bidding mechanism that is more similar to African market exchanges and we analyze factors likely to affect bidding. Experiments with African consumers show that the proposed first-price mechanism has no advantage over conventional second-price mechanisms. Results show high and significant cash-in-hand, experimenter, and time of day effects in main rounds, and significant ordering effects in test rounds. These effects need to be carefully considered when applying the Becker-DeGroot-Marschak mechanism in Africa.

Improving mountain bike trails in Austria: An assessment of trail preferences and benefits from trail features using choice experiments

Abstract: Over the past two decades, mountain biking has emerged as an increasingly popular recreational activity. However, at least in Austria official trails do not necessarily match the preferences of bikers and therefore they often ride on unofficial trails or on trails where biking is not allowed. This behavior can result in conflicts with other trail users, landowners, hunters and conservationists. With data from an online choice experiment we confirm and extend results from previous studies on mountain biking, such as riders preferring technically challenging trails with lots of singletrack and vertical climb. However, the specific preferences depend on rider characteristics, especially experience and age. Through a simulation of market shares and the calculation of compensating surplus for riders in the study area in forests close to Vienna, we demonstrate how this research can provide insights about how to adjust trails to better match the interests of bikers while still respecting regulations which are in the interests of landowners, hunters and ecological concerns. Management implications ● To avoid conflict with other trail users, we propose tailoring trails specifically to the needs of the diverse group of bikers. ● For example, trails should have large amounts of technically challenging singletrack, at least on down hill sections. ● Trails should vary in their attributes such as vertical climb or length, to fit the preferences of riders with different socio-demographic background and experience. ● Multi-use trails for bikers and hikers can be recommended, however, horses on the same trails should be avoided.

Comparing Contingent Valuation Method, Choice Experiments and Experimental Auctions in soliciting Consumer preference for maize in Western Kenya: Preliminary results

Abstract: Vitamin A deficiency (VAD) is a serious problem causing severe eye problems and affects the immune system. One effort to reduce VAD is biofortification, the breeding for increased content of pro-vitamin A carotenoids. Since maize is a major food staple for East and Southern Africa, there is a large interest in breeding maize for increased carotenoids content, which however causes coloration of maize. Since most consumers in these regions prefer white maize, it is unclear how they will balance the improved nutritional quality against the undesired color change. It is therefore important to study consumers’ attitudes and preferences before introduction of such products. In order to determine the most appropriate method for such a study, a methodological study trying three methods, Contingent Valuation, Choice Experiments and Experimental Auctions was undertaken in Western Kenya in 100 households. The experimental auction produced the most realistic preference estimates though it was more expensive.

Starting Point Bias in Contingent Valuation Bidding Games

Abstract: A test for starting point bias in the iterative bidding format of contingent valuation studies is developed in this paper. The test is applied to the data from three contingent valuation studies and to the data from a simulated market study. Starting point bias was found to be a problem in all three contingent valuation studies. A starting point problem did not exist in the simulated market suggesting that starting point bias may be an artifact of hypothetical markets. The validity of using bidding games with fixed starting bids is evaluated.

Understanding Hypothetical Bias: An Enhanced Meta-Analysis

Abstract: The presence of hypothetical bias (HB) associated with stated preference methods has garnered frequent attention in the broad literature trying to describe and understand human behavior, often seen in environmental valuation, marketing studies, transportation choices, medical research, and others. This study presents an updated meta-analysis to explore the source of HB and methods to mitigate it. While previous meta-analysis on this topic often involves a few dozen articles, this analysis includes 131 studies after reviewing over 500 published and unpublished articles. This enables the inclusion of several important factors that have not been investigated before. These include relatively recent willingness to pay elicitation methods such as choice experiments and the Turnbull lower bound estimator. Newly emerged HB reduction techniques such as consequentiality and certainty follow-up treatments are also included. For explanatory variables that have been examined in previous studies, this analysis does not always report consistent findings. In particular, holding everything constant and contrary to commonly-held beliefs, the method of auction does not offer much reduction to HB compared to more conventional methods such as a referendum vote. However, choice experiment, cheap talk, consequentiality and certainty follow-up all significantly contributed to explaining and mitigating the magnitude of HB. These results help practitioners to understand HB’s presence and choose appropriate methods for amelioration. The framework established through this study also enables future analyses targeted at understanding variations built upon one or multiple HB mitigation techniques.

Developing country consumers' acceptance of biofortified foods: a synthesis

Abstract: The success of biofortified staple crops depends on whether they are accepted and consumed by target populations. In the past 8 years, several studies were undertaken to understand consumers’ acceptance of foods made with biofortified staple crops. Consumer acceptance is measured in terms of their sensory evaluation and economic valuation of biofortified varieties vis-a-vis conventional ones. These studies apply expert sensory panel and hedonic trait analyses methods adopted from food sciences literature, as well as various preference elicitation methods (including experimental auctions, revealed choice experiments, and stated choice experiments) adopted from experimental economics literature. These studies also test the impact of various levers on consumers’ evaluation and valuation for biofortified foods. These levers include (i) nutrition information and the media through which such information is conveyed; (ii) the length and content of nutrition information; (iii) different branding options; (iv) the nature (national or international) of the branding/certification agency that is endorsing the biofortified staple food; and (v) the nature (national or international) of the agency that is delivering the biofortified staple food. This paper brings together evidence on consumer acceptance of biofortified crops on 5 crops across 7 countries in Africa, Asia and Latin America. The results of these studies are expected to aid in the development of biofortified crops that consumers like, as well as in the development of appropriate marketing and consumer awareness or information campaigns to encourage the switch in consumption from traditional staples to biofortified ones.