Recent research shows that disparities between willingness to pay (WTP) and willingness to accept (WTA) disappear with market experience and training. In effect, preferences can be refined by eliminating subjects’ misconceptions regarding elicitation procedures. We use a stated measure of confidence as a proxy for misconceptions and test the influence of confidence on truthful revelation of induced values in WTP and WTA auctions using the Becker-DeGroot-Marschak (BDM) mechanism. The results indicate that confidence matters for buyers and sellers. With confidence, WTA and WTP measures converge, and people with greater confidence choose the dominant bidding strategy more frequently.

We compare the research productivity of faculties housed in departments offering doctoral degrees in agricultural economics (AgEcon) with faculties housed in departments offering doctoral degrees in economics (Econ) that specialize in environmental and resource economics. Rankings are based on faculty publications in EconLit between 1985 and 2010. We find that AgEcon departments publish more papers and rate higher overall on productivity measures than Econ departments but that average productivity is greater for Econ departments. AgEcon publications dominate the Journal of Economic Literature's (JEL's) agriculture (Q1) subdiscipline while Econ and AgEcon departments publish evenly in the other Q subdisciplines.

Due to expanding trade and increasing concentration of production during the past few decades, small local farms have faced ever-growing competitive pressures. We investigate the impacts of this globalization on production of local food by examining Hawai‘i's open island economy and econometrically evaluating impacts of import competition on the growth and survival of individual fruit and vegetable farms. We find evidence that rising levels of imports significantly hinder farm growth in Hawai'i and have a smaller impact on farm survival. Increased foreign competition increases the likelihood of exit for commercial farms but has little effect on small noncommercial farms.

State programs promoting their agricultural products have proliferated in response to increased consumer interest in locally grown foods. Tennessee, for example, currently has two state-funded programs promoting its agricultural products. This study examines the factors associated with participation by Tennessee fruit and vegetable farmers in those programs. The results suggest that farmer participation is associated with farm income, use of extension resources, and fresh produce sales. These results should be of interest to anyone attempting to increase producer participation in such programs.

In traditional contingent valuation, the researcher seeks the amount a respondent is willing, ceteris paribus, to pay to obtain something. But if a respondent receives a “warm glow” from a yes response, ceteris is not paribus. In estimating willingness to pay (WTP) to reduce environmental impacts from consumption of transportation fuel, we find that respondents who were relatively less environmentally focused in the past receive greater warm-glow benefits from a “yes” response and have greater “warm” WTP (WTP that includes warm-glow benefits). Yet respondents who were relatively more environmentally focused in the past have greater “cold” WTP (WTP excluding warm-glow benefits).

Understanding willingness to harvest (WTH) is essential to assessing the social availability of woody biomass from private land. Currently, the only economically feasible way to harvest woody biomass is in conjunction with sawlogs. We examined WTH sawlogs and woody biomass from owners of family forests using data from a survey of Missouri forest owners. While their WTH increased with revenue expected from woody biomass, revenue expected from sawlogs was a stronger influence. Incentive payments for woody biomass thus are unlikely to increase its supply, and the social availability of woody biomass will remain limited unless sawlog prices rise significantly.

Consumers’ willingness to pay for postharvest-processed (PHP) raw oysters—oysters without health risks—is studied in experimental auction markets. The experimental design decomposes the effects of taste, objective risk information, and information on four PHP technologies on consumer valuations. Results show that relatively uninformed consumers are willing to pay equivalent amounts for PHP and traditional raw oysters. However, after a blind taste test, consumers are willing to pay a significant premium for traditional raw oysters, and the premium persists after objective information on risk and processing technologies is provided. The results are robust across PHP technologies.

We examine the causal relationships between ethanol production and the agricultural economy and rural incomes in the United States for 1981 through 2010. We use bivariate cointegration and Granger causality procedures and account for two structural breaks in ethanol production in the analysis, which shows that ethanol production Granger-caused agricultural net value added, agriculture's share of U.S. employment, net returns to operators, and rural income per capita in the short run. These causal relationships generally persisted in the long run. However, the causality between ethanol and rural incomes diminished in the long run.