The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation

Food Policy

Volumn 46, Issue , 2014, Pages 13-21

  Shi, Lijia ^a   Gao, Zhifeng ^a   Chen, Xuqi ^a  

^a UNIVERSITY OF FLORIDA   (United States)

Author keywords

Contingent valuation; Cross price effect; Orange juice; Reference price; Willingness to pay

Indexed keywords

COMMODITY PRICE; CONTINGENT VALUATION; NEIGHBORHOOD; PRICE DETERMINATION; WILLINGNESS TO PAY;

EID: 84896798509     PISSN: 03069192     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.foodpol.2014.01.009     Document Type: Article

References (58)

1. Allenby G.M., Rossi P.E. Quality perceptions and asymmetric switching between brands. Market. Sci. 1991, 10(3):185-204.
2. Alvarez-Farizo B. Estimating the benefits of agri-environmental policy: Econometric issues in open-ended contingent valuation studies. J. Environ. Planning Manage. 1999, 42(1):23-43.
3. Arnot C., Boxall P.C., Cash S.B. Do ethical consumers care about price? A revealed preference analysis of fair trade coffee purchases. Can. J. Agric. Econ./Revue Canadienne d'agroeconomie 2006, 54(4):555-565.
4. Bell D.R., Bucklin R.E. The role of internal reference points in the category purchase decision. J. Consum. Res. 1999, 26(2):128-143.
5. Bell D.R., Chiang J., Padmanabhan V. The decomposition of promotional response: an empirical generalization. Market. Sci. 1999, 18(4):504-526.
6. Bettman J.R., Luce M.F., Payne J.W. Constructive consumer choice process. J. Consum. Res. 1998, 25(3):187-217.
7. Blattberg R.C., Wisniewski K.J. Price-induced patterns of competition. Market. Sci. 1989, 8(4):291-309.
8. Bronnenberg B.J., Wathieu L. Asymmetric promotion effects and brand positioning. Market. Sci. 1996, 15(4):379-394.
9. Brookshire R.H. Subject description and generality of results in experiments with aphasic adults. J. Speech Hear Disord. 1983, 48:342-346.
10. Brown M.G. The demand for fruit juices: market participation and quantity demanded. West. J. Agric. Econ. 1986, 11(2):179-183.
11. Burt O.R., Brewer D. Estimation of net social benefits from outdoor recreation. Econometrica 1971, 39(5):813-827.
12. Carlsson, F., Martinsson, P., 2006. Do Experience and Cheap Talk Influence Willingness to Pay in an Open-ended Contingent Valuation Survey? Göteborg University, Department of Economics WP (190), Göteborg University, Göteborg, Sweden.
13. Caulkins P.P., Bishop R.C., Bouwes N.W. Omitted cross-price variable biases in the linear travel cost model: correcting common misperceptions. Land Econ. 1985, 61(2):182-187.
14. Chernev A. Reverse pricing and online price elicitation strategies in consumer choice. J. Consum. Psychol. 2003, 13(1&2):51-62.
15. Chiang J. A simultaneous approach to the whether, what, and how much to buy questions. Market. Sci. 1991, 10(4):297-315.
16. Corrigan J.R., Rousu M.C. Posted prices and bid affiliation: evidence from experimental auctions. Am. J. Agric. Econ. 2006, 88(4):1078-1090.
17. Cummings R.G., Brookshire D.S., Schulze W.D., Bishop R.C., Arrow K.J. Valuing Environmental Goods: An Assessment of the Contingent Valuation Method 1986, Rowman & Allanheld Publishing, Totowa, New Jersey.
18. Diamond P.A., Hausman J.A. Contingent valuation: is some number better than no number?. J. Econ. Perspect. 1994, 8(4):45-64.
19. Drichoutis A.C., Lazaridis P., Nayga R.M. The role of reference prices in experimental auctions. Econ. Lett. 2008, 99(3):446-448.
20. Dwyer, J.F., Kelly, J.R., Bowes, M.D., 1977. Improved Procedures for Valuation of the Contribution of Recreation to National Economic Development. WRC Research Report No. 128, Water Resource Center, University of Illinois, Urbana, IL.
21. Gafni A., Birch S. Equity considerations in utility-based measures of health outcomes in economic appraisals: an adjustment algorithm. J. Health Econ. 1991, 10(3):329-342.
22. Gaynor, M., Li, J., Vogt, W.B., 2006. Is drug coverage a free lunch? Cross-price elasticities and the design of prescription drug benefits. NBER No. w12758, National Bureau of Economic Research, Cambridge, MA. http://cid.bcrp.gob.pe/biblio/Papers/NBER/2006/Diciembre/w12758.pdf.
23. Gum R.L., Martin W.E. Problems and solutions in estimating the demand for and value of rural outdoor recreation. Am. J. Agric. Econ. 1975, 57(4):558-566.
24. Gupta S. Impact of sales promotions on when, what, and how much to buy. J. Market. Res. 1988, XXV:342-355.
25. Hall J.M., Kopalle P.K., Krishna A. Retailer dynamic pricing and ordering decisions: category management versus brand-by-brand approaches. J. Retail. 2010, 86(2):172-183.
26. Hanemann W.M. Valuing the environment through contingent valuation. J. Econ. Perspect. 1994, 8(4):19-43.
27. Hausman J. Contingent valuation: from dubious to hopeless. J. Econ. Perspect. 2012, 26(4):43-56.
28. Hu W., Woods T., Bastin S., Cox L., You W. Assessing consumer willingness to pay for value-added blueberry products using a payment card survey. J. Agric. Appl. Econ. 2011, 43(2):243-258.
29. Jackson L.F. Hierarchic demand and the Engel curve for variety. Rev. Econ. Stat. 1984, 66(1):8-15.
30. Kalyanaram G., Little J.D.C. An empirical analysis of latitude of price acceptance in consumer package goods. J. Consum. Res. 1994, 21:408-418.
31. Kamins M.A., Dreze X., Folkes V.S. Effects of seller-supplied prices on buyers' product evaluations: Reference prices in an internet auction context. J. Consum. Res. 2004, 30(4):622-628.
32. Kealy M.O., Turner R.W. A test of the equality of closed-ended and open-ended contingent valuations. Am. J. Agric. Econ. 1993, 75(2):321-331.
33. Krishnamurthi L., Mazumdar T., Raj S.P. Asymmetric response to price in consumer brand choice and purchase quantity decisions. J. Consum. Res. 1992, 19:387-400.
34. List J.A. Do explicit warnings eliminate the hypothetical bias in elicitation procedures? Evidence from field auctions for sports cards. Am. Econ. Rev. 2001, 91(5):1498-1507.
35. List J.A., Shogren J.F. Price information and bidding behavior in repeated second-price auctions. Am. J. Agric. Econ. 1999, 81(4):942-949.
36. Lusk J.L. Effects of cheap talk on consumer willingness-to-pay for golden rice. Am. J. Agric. Econ. 2003, 85(4):840-856.
37. Markosyan, A., Wahl, T.I., McCluskey, J.J., 2007. Functional foods in the marketplace: Willingness to pay for apples enriched with antioxidants. Agricultural and Applied Economics Association Conference, Portland, OR, July 29-August 1.
38. Monroe K.B. Objective and subjective contextual influences on price perceptions. Consumer and Industrial Buying Behavior 1977, 267-286. North-Holland Publishing, New York. A.G. Woodside, J.N. Sheth, P.D. Bennett (Eds.).
39. Monroe K.B., Della Bitta A.J. Models for pricing decisions. J. Mark. Res. 1978, 15(3):413-428.
40. Montgomery D.C. Design and Analysis of Experiments 2006, Wiley, New York.
41. Moon, W., Rimal, A., Balasubramanian, S.K., 2007. UK Consumers' Willingness-to-accept (WTA) GM Food. Southern Agricultural Economics Association Conference, Mobile, AL, February.
42. Morwitz V., Steckel J.H., Gupta A. When do purchase intentions predict sales?. Int. J. Forecast. 2007, 23(3):347-364.
43. Muller L., Ruffieux B. Do price-tags influence consumers' willingness to pay? On the external validity of using auctions for measuring value. Exp. Econ. 2011, 14(2):181-202.
44. Munro A., Hanley N.D. Information, uncertainty, and contingent valuation. Valuing Environmental Preferences: Theory and Practice of the Contingent Valuation Method in the US, EU, and Developing Countries 1999, 258-279. Oxford University Press, Oxford and New York. I.J. Bateman, K.G. Willis (Eds.).
45. Munro A., Sugden R. On the theory of reference-dependent preferences. J. Econ. Behav. Organ. 2003, 50(4):407-428.
46. Nunes J.C., Boatwright P. Incidental prices and their effect on willingness to pay. J. Mark. Res. 2004, 41:457-466.
47. O'Brien B., Gafni A. When do the "dollars" make sense? Toward a conceptual framework for contingent valuation studies in health care. Med. Decis. Making 1996, 16(3):288-299.
48. Payne J.W., Bettman J.R., Johnson E.J. Behavioral decision research: a constructive processing perspective. Annu. Rev. Psychol. 1992, 43(1):87-131.
49. Sethuraman R. A meta-analysis of national brand and store brand cross-promotional price elasticities. Market. Lett. 1995, 6(4):275-286.
50. Sethuraman R. A model of how discounting high-priced brands affects the sales of low-priced brands. J. Mark. Res. 1996, 33(4):399-409.
51. Sethuraman R., Srinivasan V. The asymmetric share effect: an empirical generalization on cross-price effects. J. Mark. Res. 2002, 39(3):379-386.
52. Sethuraman R., Srinivasan V., Kim D. Asymmetric and neighborhood cross-price effects: some empirical generalizations. Market. Sci. 1999, 18(1):23-41.
53. Stewart H., Blisard N., Jolliffe D. Do income constraints inhibit spending on fruits and vegetables among low-income households?. J. Agric. Resour. Econ. 2003, 28(3):465-480.
54. Thaler R. Toward a positive theory of consumer choice. J. Econ. Behav. Organ. 1980, 1(1):39-60.
55. Thaler R. Mental accounting and consumer choice. Market. Sci. 1985, 4(3):199-214.
56. Tversky A., Simonson I. Context-dependent preferences. Manage. Sci. 1993, 39(10):1179-1189.
57. Wolk A., Spann M. The effects of reference prices on bidding behavior in interactive pricing mechanisms. J. Interact. Market. 2008, 22(4):2-18.
58. Yadav M.S., Seiders K. Is the price right? Understanding contingent processing in reference price formation. J. Retail. 1998, 74(3):311-329.