Scandinavian Working Papers in Economics

Working Paper Series,
Norwegian University of Life Sciences, School of Economics and Business

No 01-2015: Eliciting Consumer WTP for Food Characteristics in a Developing Context: Comparison of four methods in a field experiment

Roselyne Alphonce and Frode Alfnes ()
Additional contact information
Roselyne Alphonce: School of Economics and Business, Norwegian University of Life Sciences, Postal: Norwegian University of Life Sciences, School of Economics and Business, P.O. Box 5003 NMBU, N-1432 Ås, Norway
Frode Alfnes: School of Economics and Business, Norwegian University of Life Sciences, Postal: Norwegian University of Life Sciences, School of Economics and Business, P.O. Box 5003 NMBU, N-1432 Ås, Norway

Abstract: This paper aims at answering two objectives;1) assess consumer preference and willingness to pay for organic and food safety inspected tomatoes in a traditional African food market; 2) compare willingness to pay for the tomato attributes in four different elicitation techniques. We elicit willingness to pay for conventional, organic and/or food-safetyinspected tomatoes using methods that can be conducted with one respondent at a time: the Becker–DeGroot–Marschak mechanism, multiple price lists, multiple price lists with stated quantities, and real-choice experiments. All methods show that consumers are willing to pay a premium for organic and food-safety-inspected tomatoes. However, the size of the premium is significantly larger when consumers choose between alternatives than when they indicate their reservation price. Throughout the paper, we discuss method implementation issues for this context and make method recommendations for future research.

Keywords: elicitation methods; framed field experiments; organic; food-safety inspected; Tanzania; WTP

JEL-codes: C93; D12; Q10; Q13

39 pages, March 5, 2015

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