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A Nonhypothetical Ranking and Auction Mechanism for Novel Products

Published online by Cambridge University Press:  26 January 2015

Callie McAdams ,
Marco A. Palma ,
Charles Hall  and
Ariun Ishdorj
Callie McAdams
Affiliation:
Informa Economics, McLean, Virginia
Marco A. Palma
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, Texas
Charles Hall
Affiliation:
Department of Horticultural Sciences, and Holder of the Ellison Chair in International Floriculture, Texas A&M University, College Station, Texas
Ariun Ishdorj
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, Texas
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Extract

Preferences for pomegranates, including some novel pomegranate varieties, were evaluated using an experimental auction and nonhypothetical preference ranking mechanism. Additional information on the taste and health benefits of the products was provided to mimic the information-gathering process on novel products. Product familiarity, product information, and reference prices were key factors in explaining willingness to pay for the included novel products. Results from the auction and nonhypothetical preference ranking procedures were divergent. Furthermore, interactions were detected between information treatments and product characteristics.

Keywords

experimental auctionnovel productpreference rankingwillingness to payC91
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 45 , Issue 1 , February 2013 , pp. 35 - 52
Copyright
Copyright © Southern Agricultural Economics Association 2013

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