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In this study, we designed a delayed payment mechanism in laboratory second price auctions (SPAs), under which subjects received a cash endowment two weeks after the experiment day and had to use their own money to pay the experimental losses (if any) on the experiment day. We compared the effect of delayed payment on overbidding in the induced value SPAs with the conventional “on-the-spot” payment mechanism where the subjects received an endowment on the experiment day, and the prepaid mechanism where the subjects received the endowment two weeks before the experiment day. Each auction was repeated for 20 rounds to provide sufficient learning opportunities to the bidders. Our results showed that bids converged to the corresponding values over auction rounds and overbidding was reduced by previous losses, consistently with the adaptive learning theory. Moreover, overbidding seems to depend significantly on bidders’ cash holding, and the magnitude of the payment treatment effects depends crucially on liquidity constraints. In the presence of liquidity constraints, both delayed and prepaid payment mechanisms reduced overbidding, while in the absence of liquidity constraints, only the delayed endowment mechanism reduced overbidding. Furthermore, when controlling the degree of liquidity constraints, subjects with higher GPAs were less likely to overbid and the delayed endowment mechanism significantly reduced overbidding compared to other payment mechanisms. These results suggest that overbidding in SPAs might be caused by bounded rationality and could be reduced by adaptive learning especially when overbidding becomes “truly” costly to subjects. [ABSTRACT FROM AUTHOR]

This study examines two different strategies with respect to managing the order in which information about genetically modified (GM) technology would reach and impact consumers of edamame, often referred to as the “vegetable soybean”. Edamame are soybeans harvested while the beans are young and soft. We capture consumers’ willingness to pay (WTP) for unlabeled edamame, non-GM edamame, and GM edamame using a non-hypothetical random nth price auction. We elicit consumers’ valuation for each edamame product before and after introducing information, and test two strategies where the order of providing positive and negative information is reversed. The results suggest that negative information affects WTP to a much greater extent than positive information. Hence a strategy to proactively deal with eventual negative press about GM technology did not lead to a different result than a strategy that would react to or attempt to thwart negative information with positive information at a later date. These findings suggest that it would be difficult to introduce new GM edamame as edible products in the market as marginally negative preconceptions about GM at the time of the experiment were easier to reinforce with negative information than to combat with positive information about GM. [ABSTRACT FROM AUTHOR]

We empirically question the commonly invoked assumption of normality of taste distribution in mixed logit models with continuous random parameters. We use a WTP-space random utility discrete choice model with flexible distributions on data from two choice experiments regarding beef with nested set of quality attributes. We specifically focus on distributional features such as asymmetry, multi-modality and range of variation, and find little support for normality. Our results are robust to attribute dimensionality in experimental design. Implications of our results for practitioners in the field are discussed. [ABSTRACT FROM AUTHOR]

There is evidence that middle school transition adversely affects educational and psychological outcomes of pre-teen children, but little is known about the impacts of middle school transition on other aspects of health. In this article, we estimate the impact of middle school transition on the body mass index (BMI) of public schoolchildren in Arkansas, United States. Using an instrumental variable approach, we find that middle school transition in grade 6 led to a moderate decrease of 0.04 standard deviations in BMI z -scores for all students. Analysis by subsample indicated that this result was driven by boys (0.06–0.07 standard deviations) and especially by non-minority boys (0.09 standard deviations). We speculate that the changing levels of physical activities associated with middle school transition provide the most reasonable explanation for this result. [ABSTRACT FROM AUTHOR]

Using a discrete choice experiment with real economic incentives, this paper studies how food fiscal policies and external influences (such as pestering and information) can affect parental choice of food for their child. Using pairs of a parent and child, the experimental design varies the food prices of healthier and unhealthier alternatives of food products for children as part of specific food fiscal policies. We then examine the interplay of children's pester power as well as information about the fiscal policies. The results from our lab experiment suggest that (a) implementing a fat tax and a subsidy simultaneously can shift parental behavior to healthier food products to a greater degree than a fat tax or a subsidy alone, (b) providing information regarding the food fiscal policies can further increase the impact of the intervention, and (c) child pestering is one of the causes of the moderate effectiveness of the policies as it strongly affects parents in making unhealthier choices. [ABSTRACT FROM AUTHOR]

Many studies in developing countries have found a negative association between breastfeeding duration and child growth. This finding creates a public policy dilemma given the widely accepted benefits of breastfeeding. Plausible causes for the negative association include reverse causality and omitted variables. Using the 2005 Demographic and Health Survey from rural Ethiopia, we find a downward bias in the estimated growth effect of breastfeeding duration before we control for the nutritional adequacy of complementary foods. Once the omitted variable problem is addressed, we find no evidence of adverse growth effects from prolonged breastfeeding. Instead, we find that the effect of inadequate supplementation on child growth is stronger for children that are breast-fed for shorter duration. These results support policies aimed at promoting breastfeeding beyond the first six months of life. [ABSTRACT FROM AUTHOR]

Both cisgenesis and transgenesis are plant breeding techniques that can be used to introduce new genes into plant genomes. However, transgenesis uses gene(s) from a non-plant organism or from a donor plant that is sexually incompatible with the recipient plant while cisgenesis involves the introduction of gene(s) from a crossable—sexually compatible—plant. Traditional breeding techniques could possibly achieve the same results as those from cisgenesis, but would require a much larger timeframe. Cisgenesis allows plant breeders to enhance an existing cultivar more quickly and with little to no genetic drag. The current regulation in the European Union (EU) on genetically modified organisms (GMOs) treats cisgenic plants the same as transgenic plants and both are mandatorily labeled as GMOs. This study estimates European consumers’ willingness-to-pay (WTP) for rice labeled as GM, cisgenic, with environmental benefits (which cisgenesis could provide), or any combination of these three attributes. Data were collected from 3,002 participants through an online survey administered in Belgium, France, the Netherlands, Spain and the United Kingdom in 2013. Censored regression models were used to model consumers’ WTP in each country. Model estimates highlight significant differences in WTP across countries. In all five countries, consumers are willing-to-pay a premium to avoid purchasing rice labeled as GM. In all countries except Spain, consumers have a significantly higher WTP to avoid consuming rice labeled as GM compared to rice labeled as cisgenic, suggesting that inserting genes from the plant’s own gene pool is more acceptable to consumers. Additionally, French consumers are willing-to-pay a premium for rice labeled as having environmental benefits compared to conventional rice. These findings suggest that not all GMOs are the same in consumers’ eyes and thus, from a consumer preference perspective, the differences between transgenic and cisgenic products are recommended to be reflected in GMO labeling and trade policies. [ABSTRACT FROM AUTHOR]

Consumers carry a wealth of external knowledge and experience into a study that may affect choices in even the most well-crafted experiment. We derive a conceptual model showing how the level and variability of price perceptions “outside” the task at hand might affect choice behavior, and we conduct an experiment to test the model by manipulating information provided to respondents in a way to alter the “outside the experiment” perceptions. Mixed logit, error component models show that reference-dependent models best describe the choice data, and we find that consumer choice is significantly affected by the experiment manipulations. The predictions of the model are borne out in the data. As expected, price sensitivity is generally higher for price changes above a price reference point than below. Also as predicted, exogenously increasing external reference prices and exogenously reducing the variability in references prices both serve to increase the probability of making a purchase and reduce the probability of choosing “none.” These results have important implications for the design and practice of choice experiments, as they show that consumer choice is affected by perceptions of the level and variability of prices outside the experiment. More generally, the results highlight the need to understand the formation and distribution of reference prices when predicting consumer choice. [ABSTRACT FROM AUTHOR]

Introduction: Arkansas is among the poorest states and has high rates of childhood obesity. In 2003, it became the first state to systematically screen public schoolchildren for unhealthy weight status. This study aims to examine the socioeconomic disparities in Body Mass Index (BMI) growth and the risk of the onset of obesity from childhood through adolescence.Methods: This study analyzed (in 2015) the data for a large cohort of Arkansas public schoolchildren for whom BMIs were measured from school years 2003/2004 through 2009/2010. A linear growth curve model was used to assess how child-level sociodemographics and neighborhood characteristics were associated with growth in BMI z-scores. Cox regression was subsequently used to investigate how these factors were associated with the onset of obesity. Because children might be classified as obese in multiple years, sensitivity analysis was conducted using recurrent event Cox regression.Results: Survival analysis indicated that the risk of onset of obesity rose sharply between ages of 5 and 10 and then again after age 15. The socioeconomic disparities in obesity risk persisted from kindergarten through adolescence. While better access to full service restaurants was associated with lower risk of the onset of obesity (Hazard Ratio (HR)=0.98, 95% CI=0.97-0.99), proximity to fast food restaurants was related to increased risk of the onset of obesity (HR=1.01, 95% CI=1.00-1.01).Conclusions: This analysis stresses the need for policies to narrow the socioeconomic gradient and identifies important time periods for preventative interventions in childhood obesity. [ABSTRACT FROM AUTHOR]

Time preferences have been recognized by numerous studies as an important driver of a number of healthy and environmentally-friendly behaviors. In this study, we first examined if healthy and environmentally-friendly food labels (e.g., USDA organic, carbon trust, health claim, and calories) are relevant in driving food choices. Second, using the Consideration of Future Consequences (CFC) scale we analyzed if individuals with different time preferences have different choice behavior and valuations in relation to these labels. Results indicate that consumers value both healthy and environmentally-friendly attributes displayed on labels. Results also suggest that time preferences can significantly influence consumers’ valuation for the USDA organic label, the presence of health claims and the calorie amount attribute. [ABSTRACT FROM AUTHOR]

Sustainability labels are important tools that help consumers assess the sustainability aspects of food. While past studies have focused on visual attention to nutrition information, no study has investigated the visual attention paid by consumers to the sustainability information on food. Our study contributes to the need to better understand consumers' attention to sustainability information when making food choices. The objective was to explore the importance that consumers attach to sustainability attributes and investigate how this relates to the visual attention paid to these attributes during the choice decision and to willingness-to-pay (WTP). Visual attention during the decision making process was measured in terms of fixation time and fixation count, which were then analyzed in relation to the stated attribute importance. Our results suggest that consumer segments with differences in stated attribute importance, visually attend differently to these attributes. Higher valued attributes also exhibited higher visual attention. Our results suggest that consumers who spend more time attending to and fixate more on sustainability attributes value them more. [ABSTRACT FROM AUTHOR]

There are various sustainability certifications and claims for food products that focus on environmental or ethical benefits. These claims empower consumers to make informed purchasing decisions that take environmental and ethical considerations into account. This paper compares consumers’ preferences for four types of sustainability claims related to organic meat, free range, animal welfare and carbon footprint. Using a choice experiment on a chicken breast product, our results show that nine in every ten Belgian consumers favor free range claims, which are also valued the most highly, attracting premiums ranging from 43% to 93%. Our study also shows that a vast majority of consumers (87%) would welcome the introduction of an EU level animal welfare label. The carbon footprint labels and the organic labels are less appealing to consumers, who have lower willingness to pay for these labels. Belgian consumers prefer the national Belgian organic food logo, certified by a private organization, to the newly-introduced EU organic food logo. [ABSTRACT FROM AUTHOR]