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Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

2009

Iowa State University

Apples

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

Discounting Spotted Apples: Investigating Consumers' Willingness To Accept Cosmetic Damage In An Organic Product, Chengyan Yue, Frode Alfnes, Helen H. Jensen Apr 2009

Discounting Spotted Apples: Investigating Consumers' Willingness To Accept Cosmetic Damage In An Organic Product, Chengyan Yue, Frode Alfnes, Helen H. Jensen

Economics Publications

The appearance of organic produce is often less than perfect because of limited methods of avoiding plant diseases. We combine hypothetical and real auction mechanisms to investigate how cosmetic damage affects Consumers' willingness to pay for apples. We find that 75% of the participants are willing to pay more for organic than for conventional apples given identical appearance. However, at the first sight of any imperfection in the appearance of the organic apples, this segment is significantly reduced. Furthermore, the cosmetic damage has a larger impact on the willingness to pay for organic apples than for conventional apples.


Cognitive Dissonance As A Means Of Reducing Hypothetical Bias, Frode Alfnes, Chengyan Yue, Helen H. Jensen Feb 2009

Cognitive Dissonance As A Means Of Reducing Hypothetical Bias, Frode Alfnes, Chengyan Yue, Helen H. Jensen

CARD Working Papers

Hypothetical bias is a persistent problem in stated preference studies. We propose and test a method for reducing hypothetical bias based on the cognitive dissonance literature in social psychology. A central element of this literature is that people prefer not to take inconsistent stands and will change their attitudes and behavior to make them consistent. We find that participants in a stated preference willingness-to-pay study, when told that a nonhypothetical study of similar goods would follow, state significantly lower willingness to pay than participants not so informed. In other words, participants adjust their stated willingness to pay to avoid cognitive ...