Predicting responsiveness to information: consumer acceptance of biotechnology in animal products. (14th March 2020)

• Record Type: Journal Article
• Authors: Ortega, David L; Lusk, Jayson L; Lin, Wen; Caputo, Vincenzina
• Is Part Of: European review of agricultural economics. Volume 47:Number 5(2020)
• Page Start: 1644
• Page End: 1667
• Publication Date: 2020-03-14
• Subjects: biotechnology -- consumer demand -- genetic modification -- GMOs -- information effects; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Europe -- Periodicals; 338.109405
• DOI: 10.1093/erae/jbaa003
• Languages: English
• ISSNs: 0165-1587

Abstract

Abstract: We propose a novel framework using individual choice data and Bayesian updating to predict which consumers are most responsive to information—namely those consumers whose pre-information choices reveal a high level of uncertainty surrounding their preferences. We apply our method to the study of consumer acceptance of genetically modified animal products, which prior research has revealed is a particularly polarising subject. Utilising conditional willingness-to-pay estimates from mixed logit models, we find that individuals with higher preference uncertainty prior to receiving information are most responsive. Implications of our results are discussed in the context of recent breakthroughs in biotechnology.