Labeling Context and Reference Point Effects in Models of Food Attribute Demand

Posted: 13 Oct 2006

See all articles by Wuyang Hu

Wuyang Hu

University of Nevada, Reno - College of Business Administration - Department of Economics

Wiktor L. (Vic) Adamowicz

University of Alberta

Michele M. Veeman

University of Alberta - Department of Rural Economy

Abstract

There is considerable interest in the effect of labels on food product demand. Labeling statements may convey new information about attributes and place consumers in different choice contexts; consumers' assessment of information in labels may be affected by reference points. We examine labeling context relating to genetically modified (GM) food as a factor in the stochastic component of a random utility model and assess reference points over a set of observable characteristics of consumers. We find that labeling context effects are present, although relatively small, while reference dependence is a very important factor that varies over observable characteristics of the sampled consumers.

Suggested Citation

Hu, Wuyang and Adamowicz, Wiktor L. (Vic) and Veeman, Michele M., Labeling Context and Reference Point Effects in Models of Food Attribute Demand. American Journal of Agricultural Economics, Vol. 88, No. 4, pp. 1034-1049, November 2006, Available at SSRN: https://ssrn.com/abstract=937055 or http://dx.doi.org/10.1111/j.1467-8276.2006.00914.x

Wuyang Hu (Contact Author)

University of Nevada, Reno - College of Business Administration - Department of Economics ( email )

1664 N. Virginia Street
Reno, NV 89557
United States

Wiktor L. (Vic) Adamowicz

University of Alberta ( email )

Room 501 GSB
Edmonton, Alberta
Canada
780-492-4603 (Phone)
780-492-0268 (Fax)

Michele M. Veeman

University of Alberta - Department of Rural Economy ( email )

Edmonton, Alberta
Canada

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