To be(tween) or not to be(tween)? Combining between- and within-subjects design characteristics in preference elicitation for organic and local apples

Abstract

This study examines consumer preferences for organic and local apples by combining between- and within-subject design characteristics in a second price auction. We first ask subjects to bid for 1 Kg of apples without any information. In subsequent rounds we reveal information about the organic or local attributes of apples and then allow subjects to taste the apples. Results show a significant price premium for the organic attribute (but not for the local attribute) once information is provided while tasting does not further increase elicited willingness-to-pay. We also find that the mixed-subject design results in more accurate willingness-to-pay estimates than when we use information from the between-subjects or within-subjects treatments alone. These results highlight the interplay between different quality attributes in consumer decision making and emphasize the gains that can be achieved by combining between- and within-subjects characteristics in experimental auctions.

Andreas C. Drichoutis

Associate Professor of Consumer Behavior

His research interests are focused on decision making across a broad spectrum of topics pertinent to agricultural/food economics. His contributions are notably diversified spanning the area of contingent valuation and experimental auctions methods, choice under risk, inter-temporal decision making and applied demand analysis. Most of his research applies experimental economics methods to answer questions relevant to agricultural economists and decision scientists.