Experimental Evidence on Willingness to Pay of Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan
Journal of Agricultural and Applied Economics
We employed Vickrey auctions to generate willingness-to-pay (WTP) data for red meat traceability and related product characteristics with comparable experimental auctions in the United States, Canada, the U.K., and Japan. The results show that subjects are willing to pay a nontrivial premium for traceability, but the same subjects show even higher WTP for traceability-provided characteristics like additional meat safety and humane animal treatment guarantees. The implication is that producers might be able to implement traceable meat systems profitably by tailoring the verifiable characteristics of the product to consumer preferences.
Dickinson, David L., and DeeVon Bailey. Experimental Evidence on Willingness to Pay for Red Meat Traceability in the United States, Canada, the United Kingdom, and Japan. Journal of Agricultural and Applied Economics 37 (3, December 2005):537-548 (lead article).