Economics Research Institute Study Paper
Utah State University Department of Economics
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A second-price Vickrey-style auction is used to determine the willingness to pay (WTP) for credence attributes found in "cause" coffees. WTP estimates were then compared with actual market price information. The results indicate positive average bids for the cause coffees. However, premiums were found for fair-trade and shade-grown coffee in the actual price data and discounts for organic and sustainable coffee.
Galloway, Kristin and Bailey, DeeVon, "A Rose By Another Name: An Objective Analysis Of An Established Market For Credence Attributes" (2005). Economic Research Institute Study Papers. Paper 303.