Household willingness to pay for organic products

Arbeitspapier

We use hedonic prices and purchase quantities to consider what can be learned about household willingness to pay for baskets of organic products and how this varies across households. We use rich scanner data on food purchases by a large number of households to compute household specific lower and upper bounds on willingness to pay for various baskets of organic products. These bounds provide information about willingness to pay for organic without imposing restrictive assumptions on preferences. We show that the reasons households are willing to pay vary, with quality being the most important, health concerns coming second, and environmental concerns lagging far behind. We also show how these methods can be used for example by stores to provide robust upper bounds on the revenue implication of introducing a new line of organic products.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cemmap working paper ; No. CWP18/08

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Retail and Wholesale Trade; e-Commerce ; Valuation of Environmental Effects ; Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
• Subject: Haushaltsökonomik ; Willingness to pay ; Biokost ; Hedonischer Preisindex ; Großbritannien

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Griffith, Rachel ; Nesheim, Lars
• Event: Veröffentlichung
• (who): Centre for Microdata Methods and Practice (cemmap)
• (where): London
• (when): 2008

Further information

• DOI: doi:10.1920/wp.cem.2008.1808
• Handle: http://hdl.handle.net/10419/64765
• Last update: 10.03.2025, 11:42 AM CET