Inattention, availability bias, and attribute premium estimation for a biobased product. (20th September 2021)

• Record Type: Journal Article
• Authors: Cheng, Haotian; Lambert, Dayton M.; DeLong, Karen L.; Jensen, Kimberly L.
• Is Part Of: Agricultural economics. Volume 53:Number 2(2022)
• Page Start: 274
• Page End: 288
• Publication Date: 2021-09-20
• Subjects: availability bias -- bioproducts -- choice experiment -- inattention bias; Agriculture -- Economic aspects -- Periodicals; 338.105
• DOI: 10.1111/agec.12679
• Languages: English
• ISSNs: 0169-5150

Abstract

Abstract: Biobased productsare non‐food goods derived from agricultural and forestry materials. Products made from biomaterials could substitute for petroleum‐based inputs used to make everyday household goods. This studyestimates consumer willingness to pay (WTP) for the attributes of single‐use eating‐ware (SUEW) plates made from biobased materials. Attributes considered are product material, degradability, product labeling, and biomass origin. The study controls for inattention and availability bias on attribute premium. Results suggest that inattention bias decreased consumer WTP for SUEW products by $0.36 to $3.69/25‐count package. Consumers valued most product degradability and using non‐plastic materials to make SUEW plates. Availability bias did not affect WTP. Consumer surplus increases by $2 million if the marginal cost of producing a SUEW product made with wheat straw is less than $6.