We use two experimental valuation methods to estimate consumer demand for genetically modified golden rice. The first is an open-ended choice experiment (OECE) where participants name the quantities of golden rice and conventional rice demanded at each of several price combinations, one of which will be randomly chosen as binding. This allows us to estimate market demand by aggregating demand across participants. This estimate of market demand also allows us to estimate own-price elasticity and consumer surplus for golden rice. Comparing willingness-to-pay (WTP) estimates from the OECE with those from a uniform-price auction, we find that OECE WTP estimates exhibit less affiliation across rounds, and the effects of positive and negative information under the OECE are more consistent with prior expectations and existing studies. We also find that, while auction WTP estimates more than double across five rounds, OECE WTP estimates are stable across rounds and are always roughly equal to those from the final auction round.
We examine the effects of information on consumer bidding behavior using a uniform-price auction with four units supply for golden rice. Our findings show that mean willingness to pay (WTP) bids are highest under positive information, followed by no information, negative information, and unexpectedly lowest with two-sided information. Participants might have put more weight on the negative when faced with both positive and negative information. There is also a minor difference in WTP with respect to the reference price between positive information and no information. Furthermore, the marginal effect on WTP of positive information vis-à-vis no information is minimal. This suggests that the positive information faced by consumers might not be compelling enough to drastically increase WTP bids for a genetically modified product such as golden rice.
This study explores the effect of varying cash endowments on bidding behavior in auction experiments conducted in a developing country. Our results suggest that cash endowment levels can have different effects on bidding behavior under second price auction and random nth price auction. In contrast to past studies conducted in developed countries, we generally do not see the presence of positive house money effect in our results. If behavior varies significantly as the cash endowment is varied, then care must be taken when designing auction experiments or when comparing results to other experimental results and theoretical predictions.Keywords: agri-food product, bidding behaviour, cash endowment effect, house money effect, second price auction, random nth-price auction.JEL classification codes: C91, C92.
This study analyzed the social vulnerability and adaptive capacity to climate change impacts of women-headed households in two remote coastal communities in Lagonoy, Camarines Sur. Quantitative method following descriptive-correlational research design was employed. Out of 281 WHHs, 162 were randomly selected as the respondents of this study. Descriptive statistics, principal component analysis (PCA), t-test for independent samples, and multiple linear regression analysis were used to analyze the data. Women-headed households in the two remote coastal communities have moderate to high vulnerability in terms of demographic, economic, and social factors. No significant difference was found in their level of social vulnerability; however, a substantial difference was found in the adaptive capacity of the respondents from the East and North coastal communities. Multiple linear regression analysis revealed that the number of household members with disabilities, affiliation with social groups, time travel of the respondents, and household size were significant factors influencing social vulnerability in the two remote coastal communities. The study recommends formulating effective climate change policies and responsive strategies that enhance the rights and welfare of these households for equal distribution and access to resources, especially in socio-political structures in the community.
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