Eliciting preferences for healthy and sustainable food in the lab
Previous studies eliciting preferences for food products have found that different elicitation mechanisms lead to different valuations for the same good. There are two reasons for this: differences in the accuracy with which mechanisms elicit preferences or differences in how preferences are formed in response to the mechanism. This is the first study to distinguish between these explanations using an innovative experimental design that combines induced value (IV) and home grown (HG) preference procedures for a Second Price Vickrey Auction (SPVA) and discrete choice experiment (DCE). We elicit IV preferences for a fictitious good (token) and HG preferences for real food product (beef-based lasagne) that varies in healthiness and environmental sustainability. We find HG preferences elicited using SPVAs and DCEs are not different. After controlling for potential differences in sample composition, our results suggest that HG preference patters varies depending on the elicitation mechanism. Our IV results show that the DCE is the most demand revealing preference-elicitation procedure. Taken together, our results imply that that lack of isomorphism in our empirical application is caused by a value-elicitation problem in the SPVA.
Outcome and Translation
Our results imply that that lack of isomorphism in our empirical application is caused by a value-elicitation problem in the SPVA.
HERU researchers involved in this research project: Verity Watson
External collaborators: Ceronni, S. (Queen's University Belfast); MacDiarmid, J. (Rowett Institute of Nutrition and Health, University of Aberdeen).
Cerroni, S., Watson, V., Kalentakis, D. and Macdiarmid, J.I. (2019) 'Value-elicitation and value-formation properties of discrete choice experiment and experimental auctions', European Review of Agricultural Economics, 46(1), 3-27.