Source: OKLAHOMA STATE UNIVERSITY submitted to NRP
CONSUMER AND AGRIBUSINESS DECISION MAKING WITH PRIMARY DATA
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0205188
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2005
Project End Date
Sep 30, 2010
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
OKLAHOMA STATE UNIVERSITY
(N/A)
STILLWATER,OK 74078
Performing Department
AGRICULTURAL ECONOMICS
Non Technical Summary
Agricultural markets have historically been dominated by production and sale of generic commodities with little quality differentiation. In an effort to assist agricultural producers and agribusinesses in determining potential profitability of selling new goods and in responding to new and uncertain events such as a policy or animal disease, market research is critical. To estimate consumer demand and/or agribusiness responses to new products and events, economists must turn to relativel new and developing hypothetical-contingent or experimental markets. Despite the rising interest in estimating consumer and firm response to new value added foods and services and agricultural events, the intersection of agribusiness economists and those familiar with issues and methods of willingness-to-pay estimation appears to be small. The primary purposes of this research are to determine the reaction of consumers and producers to a) the introduction of new products, b) new policies, and c) agricultural events.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6036230301025%
6096230301025%
9016230209025%
6076230301025%
Knowledge Area
603 - Market Economics; 901 - Program and Project Design, and Statistics; 607 - Consumer Economics; 609 - Economic Theory and Methods;

Subject Of Investigation
6230 - Marketing systems and sectors thereof;

Field Of Science
2090 - Statistics, econometrics, and biometrics; 3010 - Economics;
Goals / Objectives
The primary objective of this research is to determine the reaction of consumers and producers to a) the introduction of new products, b) new policies, and c) agricultural events, such as BSE. Specific objectives of this research include: 1) Develop and compare existing methods for estimating consumer and producer demand for novel agricultural goods. 2) Determine external validity of survey and experimental methods. 3) Incorporate demand estimates from survey and experimental methods into market-level models to determine welfare implications of technological developments and agricultural policies. 4) Create prediction markets and test their external validity. 5) Explore the role of rationality and risk on producer and consumer decision making.
Project Methods
Demand for several novel goods will be estimated using the follwing methods: a) contingent valuation, b) conjoint analysis, and c) experimental auction. These methods will be used in the following contexts: a) hypothetical mail/phone survey, b) non-hypothetical mail/phone survey, d) non-hypothetical laboratory experiments, and e) non-hypothetical in-store experiments. To determine the external validity of the demand elicitation approaches, we will work closely with retail outlets such as grocery stores. The following steps will be taken to carry out this objective: 1) a mail survey, phone survey, or experimental auction will be conducted to estimate market demand for a novel product, 2) the product will actually be placed on a grocery shore shelf, 3) transaction data will be collected from the grocery store, 4) predicted and actual sales will be compared, 5) refinements in the predictive instruments will be made in accordance with the accuracy of the elicitation mechanisms. This research will develop equilibrium displacement models that link retail, wholesale, and farm markets. These models will be used to estimate changes in producer welfare resulting from a particular policy or technological development. These same models can be used to estimate producer returns to investing in certain technologies and to determine if consumer demand for a policy is sufficiently high to offset any losses in producer welfare caused by the cost imposed by a particular policy. A number of on-line prediction markets will be created to forecast agricultural events. A panel of individuals representing diverse interests and knowledge in agriculture will be recruited to participate in the real-money markets. In principle, the markets could be made open to any interested party, but the selected panel approach is preferred because it prevents overt attempts to manipulate the market and allow the project directors control over dissemination of the information in an appropriate manner. It is expected that approximately 100 individuals will be needed to ensure liquidity in the markets. To carry out objective 5, the following activities will be undertaken: 1) survey and experimental methods will be used to elicit farmers and consumers preferences for risk, 2) theoretic and econometric models will be used to explore: a) the effect of consumers' risk preferences on willingness-to-pay for novel foods and b) the effect of producers' risk preferences on willingness-to-pay for risk reducing measures such as insurance, 3) experimental methods will be used to identify and determine effect of social-psychological factors on choice of novel goods (i.e., experimental auctions will be used to determine if uncertainty, time preference, and irreversibility affect valuations for new products).

Progress 10/01/05 to 09/30/10

Outputs
OUTPUTS: A number of activities were undertaken. One research study used mail surveys to study consumer preferences for type and amount of fat in ground beef. Another study focused on studying consumers' food values, which are overarching constructs explaining food choice. Economic experiments were conducted in grocery stores to study consumer preferences for organic food and grass-fed beef. Several studies, including telephone and mail surveys and economic experiments, studied consumer preferences for farm animal welfare, a topic gaining in importance as several states have recently passed ballot initiatives banning certain agricultural practices. Economic experiments and surveys were also conducted to determine the extent to which altruism and inequality aversion can explain people's preferences for certain food products and farm policies. Other studies have focused on estimating the value of new genetic testing technologies in beef. Finally, several studies were aimed at investigate and improving methods for eliciting consumer's values for use in marketing and cost-benefit analysis. Several events were involved with the project. In March 2006, Lusk organized a conference titled "Guiding Food and Agricultural Marketing Policy in the Face of Changing Market Structures" in Washington, D.C. Lusk has also helped organize dozes of symposiums related to consumer and agribusiness decision making the professional meetings of the Agricultural and applied Economics Association, Western Agricultural economics Association, and the Southern Agricultural Economics Association. Lusk has also given numerous invited talks on the research findings at Universities, professional academic conferences, agricultural industry meetings, and to those working in government positions. Many services have been offered from the project. Lusk teaches a graduate level course, where he trains students on them the methods used to study consumer decision making. Lusk also wrote an academic book on research methods to improve consumer and agribusiness decision making. Finally, Lusk has served as an official and unofficial consultant on many projects for agribusinesses and government agencies. Products from the project include numerous journal articles, several books, and the creation of decision aids. Examples of one decision aid, which provides market-share simulations for firms considering the introduction of meat or milk from cloned animals, can be found at http://agecon.okstate.edu/faculty/publications/3103.xls or http://agecon.okstate.edu/faculty/publications/3104.xls. Results of the research have been disseminated in popular press articles, academic journal articles, books, and via numerous presentations. PARTICIPANTS: The research included numerous collaborators, including agricultural economics faculty and students at Oklahoma State University (e.g., Bailey Norwood, Shida Henneberry, Kate Brooks), economics and agricultural economics faculty at other U.S. Universities (e.g., Ken Foster at Purdue, Ted Schroeder at Kansas State, Keith Coble at Mississippi State, John List at University of Chicago, Jason Shogren at University of Wyoming), government employees (e.g., Laurian Unnevehr at the USDA Economic Research Service), faculty outside the U.S. (e.g., Jutta Roosen at Technical University of Munich in Germany; Stephan Marette at INRA in France; Ellen Goddard at the University of Alberta in Canada; Jae Bong Chang at the Korean Rural Development Institute in Korea), non-economists (e.g., Bob Weaber in Animal Science at University of Missouri; Melissa Moore in Marketing at Mississippi State University; Sara Jeager in sensory science in New Zealand), and individuals working in agribusinesses and industry organizations (e.g., National Cattlemen's Beef Association, National Soybean Board, the National Pork Board, Pfizer, Merial). TARGET AUDIENCES: Research publications and seminars were targeted at a number of groups. First, were individuals involved in formulation of policy at the USDA, FDA, and EPA. Second were agricultural producer organizations such as National Cattlemen's Beef Association, National Soybean Board, the National Pork Board. Third were agribusinesses. Finally, some of the work was aimed at educating the food consumer about modern agricultural production practices. PROJECT MODIFICATIONS: There were no project modifications

Impacts
The research on consumer preferences for animal welfare was used heavily by agricultural organizations and by organizations advocating for enhanced animal welfare. Both the Farm Bureau and the Humane Society of the United States used the results from the research studies to craft press releases, formulate policy, and craft public relations messages. Research on consumer preferences for new technologies such as genetically modified food, antibiotics, organics, and cloning have been used by government agencies to inform cost/benefit analysis of proposed regulations, and have helped agribusinesses in marketing and product adoption decisions. The results have also been used to help craft educational and promotional materials. Research on the value of new genetic testing technologies in cattle has also had an impact. Lusk has made several important contributions in the area of livestock marketing. The work helped cattle producers and feedlots judge the merits of new technology currently being marketed by several animal genetics companies. The models developed by Lusk to determine the value of genetic information to optimally sort cattle have been used by a number of the largest feedlots in the U.S. and were used by several genetic testing companies in their marketing efforts. Finally, the research on methods of studying consumer preferences has had a significant impact on the agricultural economics profession. The profession now increasing uses methods that have been shown to produce better and more accurate depictions of consumer preferences, and these changes have led to better decisions by agribusinesses and policy makers.

Publications

  • Lusk, J.L. "Experimental Auction Markets for Studying Consumer Preferences." in Consumer Driven Innovation in Food and Personal Products H. MacFie and S. Jaeger (eds.). Cambridge, UK: Woodhead, 2010.
  • Brooks, K. and J.L. Lusk. "Stated and Revealed Preferences for Organic and Cloned Milk: Combining Choice Experiment and Scanner Data." American Journal of Agricultural Economics. 92(2010):1229-1241.
  • Naico, A.T.A. and J.L. Lusk. "The Value of a Nutritionally Enhanced Staple Crop: Results from a Choice Experiment Conducted with Orange-Fleshed Sweet Potatoes in Mozambique." Journal of African Economies. 19(2010):536-558.
  • Ellison, B., J.L. Lusk, and B.C. Briggeman. "Other-Regarding Behavior and Taxpayer Preferences for Farm Policy." B.E. Journal of Economic Analysis & Policy. 10(2010), Article 96.
  • Lusk, J.L. and D. Hudson. "Bargaining over Losses." International Game Theory Review. 12(2010):83-91.
  • Prickett, R.W., F.B. Norwood, and J.L. Lusk. "Consumer Preferences for Farm Animal Welfare: Results from a Telephone Survey of U.S. Households." Animal Welfare. 19(2010):335-347.
  • Coble, K.H. and J.L. Lusk. "At the Nexus of Risk and Time Preferences: An Experimental Investigation." Journal of Risk and Uncertainty. 41(2010):67-79.
  • Lusk, J.L. and S. Marette. "Welfare Effects of Food Labels and Bans with Alternative Willingness to Pay Measures." Applied Economic Perspectives & Policy. 32(2010):319-337.
  • Ellison, B.D, J.L. Lusk, and B.C. Briggeman. "Taxpayer Beliefs about Farm Income and Preferences for Farm Policy." Applied Economic Perspectives & Policy. 32(2010):338-354.
  • Marette, S., J.L. Lusk, and J. Roosen. "Welfare Impact of Information with Experiments: The Crucial Role of the Price Elasticity of Demand." Economics Bulletin. 30(2010):1585-1593.
  • Lusk, J.L. "The Effect of Proposition 2 on the Demand for Eggs in California." Journal of Agricultural and Food Industrial Organization. 8(2010), Iss. 1, Article 3.
  • Ubilava, D., K.A. Foster, J.L. Lusk, T. Nilsson. "Effects of Income and Social Awareness on Consumer WTP for Social Product Attributes." Technological Forecasting & Social Change. 77(2010):587-593.
  • Lusk, J.L. and F.B. Norwood. "Direct vs. Indirect Questioning: An Application to the Well-Being of Farm Animals." Social Indicators Research. 96(2010):551-565.
  • Unnevehr, L., J. Eales, H. Jensen, J.L. Lusk, J. McCluskey, and J. Kinsey. "Food and Consumer Economics." American Journal of Agricultural Economics. 92(2010):506-521.
  • Ehmke, M., J.L. Lusk, and W. Tyner. "Multidimensional Tests for Differences in Economic Behavior across Cultures." Journal of Socio-Economics. 39(2010)37-45.
  • Toler, S., B.C. Briggeman, J.L. Lusk, and D.C. Adams. "Fairness, Farmers Markets, and Local Production." American Journal of Agricultural Economics. 91(2009):1272-1278.
  • Norwood, F.B. and J.L. Lusk. "The Farm Animal Welfare Debate." Choices. Vol. 24, 2009.
  • Lusk, J.L. and K. Brooks. "Public Acceptance of Animal Cloning in the Food Supply Chain." Feedstuffs. Vol. 81, No. 17, 2009, pg 5.


Progress 10/01/08 to 09/30/09

Outputs
OUTPUTS: A number of studies are underway examining consumer and agribusiness decision making in both Oklahoma and the United States. First, research on consumer preferences for farm animal has continued and a book on the topic to be published by Oxford University Press is nearing completion. Second, several papers and projects are underway to investigate how people's preferences for farm policies and different foods relate to preferences for different types of farms and aversion to inequality. Third, several large-scale surveys were conducted to determine consumer preferences for use of cloning in livestock and to project the market impacts of the introduction of meat and milk from clones. Finally, several projects are underway to investigate and improve methods for eliciting consumer's values. Several papers have been written on this issue and additional data is being collected. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
In recent years a pronounced trend has developed toward a more demand driven marketplace where agricultural producers must give considerable thought into consumer demand for specific food and fiber attributes prior to making production decisions. More research is needed to assist agricultural producers and agribusinesses in determining potential profitability of selling new goods and in responding to new and uncertain events such as a policy or animal disease. The primary purpose of this research is to determine the reaction of consumers and producers to and the social welfare effects of a) the introduction of new products, b) new food and agricultural policies, and c) agricultural events.

Publications

  • Toler, S., B.C. Briggeman, J.L. Lusk, and D.C. Adams. 2009 "Fairness, Farmers Markets, and Local Production." American Journal of Agricultural Economics. invited paper http://dx.doi.org/10.1111/j.1467-8276.2009.01296.x
  • Chang, J.B. and J.L. Lusk. "Fairness and Food Choice." Food Policy. 34(2009):483-491. http://dx.doi.org/10.1016/j.foodpol.2009.08.002
  • Lusk, J.L. and F.B. Norwood. "Some Economic Benefits and Costs of Vegetarianism." Agricultural and Resource Economics Review. 38(2009):83-92.
  • Gallardo, R.C, J.L. Lusk, R. Holcomb, and P. Rayas-Duarte. "Uncertainty in Willingness-to-Pay Estimation: Mexican Millers' Demand for Wheat Quality and Consistency." Journal of Agricultural and Applied Economics. 41(2009):599-611.
  • Rousu, M.C. and J.L. Lusk. "Valuing Information on GM Foods in a WTA Market: What Information is Most Valuable" AgBioForum. 12(2009):226-231. http://www.agbioforum.org/v12n2/v12n2a07-rousu.htm
  • Hilmer, C.E. and J.L. Lusk. "Determinants of Citations to the Agricultural and Applied Economics Association Journals." Review of Agricultural Economics. 31(2009):677-694. http://dx.doi.org/10.1111/j.1467-9353.2009.01461.x
  • Lusk, J.L. and M.D. Hudson. "Submission Patterns, Submission Policies, and Revealed Preferences for Agricultural Economics Journals." Review of Agricultural Economics. 31(2009):695-711 http://dx.doi.org/10.1111/j.1467-9353.2009.01462.x
  • Chang, J.B., J.L. Lusk, and F.B. Norwood. "How Closely Do Hypothetical Surveys and Laboratory Experiments Predict Field Behavior" American Journal of Agricultural Economics. 91(2009):518-534. http://dx.doi.org/10.1111/j.1467-8276.2008.01242.x
  • Lusk, J.L. and F.B. Norwood. "Bridging the Gap between Laboratory Experiments and Naturally Occurring Markets: An Inferred Valuation Method." Journal of Environmental Economics and Management 58(2009):236-250. http://dx.doi.org/10.1016/j.jeem.2008.12.003
  • Lusk, J.L. and F.B. Norwood. "An Inferred Valuation Method." Land Economics. 85(2009):500-514. http://le.uwpress.org/cgi/content/abstract/wple;85/3/500
  • Arunachalam, A, S.R. Henneberry, J.L. Lusk, and F. B. Norwood. "An Empirical Investigation into the Excessive-Choice Effect." American Journal of Agricultural Economics. 91(2009):810-825. http://dx.doi.org/10.1111/j.1467-8276.2009.01260.x
  • Lusk, J.L. and N. Parker. "Consumer Preferences for Amount and Type of Fat in Ground Beef." Journal of Agricultural and Applied Economics. 41(2009):75-90. http://purl.umn.edu/48763
  • Gunderson, M., J.L. Lusk, and B. Norwood. "Getting Something from Nothing: An Investigation of Beef Demand Expansion and Substitution in the Presence of Quality Heterogeneity." Review of Agricultural Economics. 31(2009):68-87. http://dx.doi.org/10.1111/j.1467-9353.2008.01426.x
  • Lusk, J.L. and B.C. Briggeman. "Food Values." American Journal of Agricultural Economics. 91(2009):184-196. http://dx.doi.org/10.1111/j.1467-8276.2009.01260.x


Progress 10/01/07 to 09/30/08

Outputs
OUTPUTS: A number of studies are underway examining consumer and agribusiness decision making in both Oklahoma and the United States. First, several studies have recently completed on consumer preferences for farm animal welfare, a topic gaining in importance as several states have recently passed ballot initiatives banning certain agricultural practices. Second, several studies have been conducted to determine the extent to which altruism and inequality aversion can explain people's preferences for certain food products and farm policies. Third, several studies have been completed studying consumer demand for beef quality attributes. Finally, several projects are underway to investigate and improve methods for eliciting consumer's values. Several papers have been written on this issue and additional data is being collected. PARTICIPANTS: Collaborators: B. Norwood (OSU Ag Economics), T. Boyer (OSU Ag Economics), C. Ward (OSU Ag Economics) TARGET AUDIENCES: Target Audiences include consumers and agribusines decision makers in both Oklahoma and the United States. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
In recent years a pronounced trend has developed toward a more demand driven marketplace where agricultural producers must give considerable thought into consumer demand for specific food and fiber attributes prior to making production decisions. More research is needed to assist agricultural producers and agribusinesses in determining potential profitability of selling new goods and in responding to new and uncertain events such as a policy or animal disease. The primary purpose of this research is to determine the reaction of consumers and producers to and the social welfare effects of a) the introduction of new products, b) new food and agricultural policies, and c) agricultural events.

Publications

  • Norwood, B., J.L. Lusk, and T. Boyer. "Forecasting Hypothetical Bias: A Tale of Two Calibrations." in Experimental Methods, Environmental Economics. T. Cherry, Kroll and J. Shogren (eds). New York: Routledge, 2008.
  • Ward, C.E., J.L. Lusk, and J.M. Dutton. "Extent and Type of Fresh Beef Branding in Grocery Stores." Journal of the Food Distribution Research Society. 39(2008)79-89.
  • Ward, C.E., J.L. Lusk, and J.M. Dutton. "Implicit Value of Retail Beef Product Attributes." Journal of Agricultural and Resource Economics. 33(2008):364-381.
  • Lusk, J.L. and K.O. Coble. "Risk Aversion in the Presence of Background Risk: Evidence from the Lab" in Risk Aversion in Experiments. J.C. Cox and G.W. Harrison (eds). Bingley, UK: Emerald, Research in Experimental Economics, Volume 12, 2008.
  • Lusk, J.L. and F.B. Norwood. "Public Opinion about the Ethics and Governance of Farm Animal Welfare." Journal of the American Veterinary Medical Association. 233(2008):1121-1126.
  • Tanner-Ehmke, M., J.L. Lusk, and J.A. List. "Is Hypothetical Bias a Universal Phenomenon A Multi-National Investigation." Land Economics. 84(2008):489-500.
  • Lusk, J.L. and A. Rozan. "Public Policy and Endogenous Beliefs: The Case of Genetically Modified Food." Journal of Agricultural and Resource Economics. 33(2008):270-289.
  • Schroeter, C. and J.L. Lusk. "Economic Factors and Body Weight: An Empirical Analysis." Journal of Agricultural and Applied Economics. 40(2008):523-538.
  • Roberts, D., T. Boyer, and J.L. Lusk. "Preferences for Environmental Quality under Uncertainty." Ecological Economics. 66(2008):584-593.
  • Lusk, J.L., D. Fields, and J. Prevatt. "An Incentive Compatible Conjoint Ranking Mechanism." American Journal of Agricultural Economics. 90(2008):487-498.
  • Yee, W.M.S., W.B. Traill, J.L. Lusk, S.R. Jaeger, L.O. House, M. Moore, B. Morrow, and C. Valli. "Determinants of Consumers' Willingness to Accept GM Foods." International Journal of Biotechnology. 10(2008):240-259.
  • Tanner-Ehmke, M., J.L. Lusk, and W. Tyner. "Measuring the Relative Importance of Country-of-Origin in Consumer Food Preferences in China, France, Niger, and the United States." Agricultural Economics. 38(2008):277-285.
  • Schroeter, C., J.L. Lusk, and W. Tyner. "Determining the Impact of Food Price and Income Changes on Body Weight." Journal of Health Economics. 27(2008):45-68. Mayen, C., M. Marshall, and J.L. Lusk. "Fresh-Cut Melon - The Money is in the Juice." Journal of Agricultural and Applied Economics. 39(2007):597-609.


Progress 10/01/06 to 09/30/07

Outputs
A number of studies are underway examining consumer and agribusiness decision making in both Oklahoma and the United States. One research study was just completed studying consumer preferences for type and amount of fat in ground beef. Another study focused on studying consumers' food values, which are overarching constructs explaining food choice. Several products are also underway studying consumer preferences for organic food and grass-fed beef. Much of this work is in submission at a peer-reviewed journal. Several projects are underway to investigate and improve methods for eliciting consumer's values. One project aims to investigate the validity of an incentive compatible conjoint ranking mechanisms. Another project aims to investigate the validity of what we refer to as inferred valuation. Three papers have been written on this issue and additional data is being collected.

Impacts
In recent years a pronounced trend has developed toward a more demand driven marketplace where agricultural producers must give considerable thought into consumer demand for specific food and fiber attributes prior to making production decisions. More research is needed to assist agricultural producers and agribusinesses in determining potential profitability of selling new goods and in responding to new and uncertain events such as a policy or animal disease. The primary purpose of this research is to determine the reaction of consumers and producers to and the social welfare effects of a) the introduction of new products, b) new food and agricultural policies, and c) agricultural events, such as BSE.

Publications

  • Norwood, F.B. and J.L. Lusk. Agricultural Marketing and Price Analysis. Upper Saddle River, NJ: Prentice-Hall, 2007.
  • Lusk, J.L. and J. Shogren. 2007. Experimental Auctions: Methods and Applications in Economic and Marketing Research. Cambridge, UK: Cambridge University Press.
  • Lusk, J.L. and K.O. Coble. 2007 "Risk Aversion in the Presence of Background Risk: Evidence from the Lab" in Risk Aversion in Experiments. Ed. J.C. Cox and G.W. Harrison. Greenwich, USA: JAI Press, Research in Experimental Economics, Volume 12.
  • Norwood, B., J.L. Lusk, and T. Boyer. 2007 "Forecasting Hypothetical Bias: A Tale of Two Calibrations." in Experimental Methods, Environmental Economics. Ed. T. Cherry, Kroll and J. Shogren. Routledge, UK,.
  • Rozan, A., J.L. Lusk, and M. Campardon. "Acceptabilite des Consommateurs Face a des OGM de Seconde Generation." Revue d Economie Politique. 117(2007)845-854.
  • Lusk, J.L., C. Alexander, and M. Rousu. "Designing Experimental Auctions for Marketing Research: Effect of Values, Distributions, and Mechanisms on Incentives for Truthful Bidding." Review of Marketing Science. 5(2007), article 3.
  • Lusk, J.L. "Economic Value of Selecting and Marketing Cattle by Leptin Genotype." Journal of Agricultural and Resource Economics. 32(2007)306-329.
  • Lusk, J.L. "Association of Single Nucleotide Polymorphisms in the Leptin Gene with Body Weight and Backfat Growth Curve Parameters for Beef Cattle." Journal of Animal Science. 85(2007):1865-1872.
  • Lusk, J.L., L. McLaughlin, and S. Jaeger. "Strategy and Response to Purchase Intention Questions." Marketing Letters. 18(2007):31-44.
  • Lusk, J.L., T. Nilsson, and K. Foster. "Public Preferences and Private Choices: Effect of Altruism and Free Riding on Demand for Certified Meat." Environmental and Resource Economics. 36(2007):499-521.
  • Lusk, J.L. and A. Rozan. "Consumer Acceptance of Ingenic Foods." Biotechnology Journal. 1(2006):1433-34.
  • Lusk, J.L., J.R. Pruitt, and F.B. Norwood. "External Validity of a Field Experiment." Economics Letters. 93(2006):285-290.


Progress 10/01/05 to 09/30/06

Outputs
A number of studies are underway examining consumer and agribusiness decision making in both Oklahoma and the United States. One research study was just completed studying consumer preferences for a ban on antibiotic use in pork production; findings from this study were published in three peer-reviewed journals. Another study utilized a mail survey to investigate the effects of government policies on people's preferences for genetically modified food. This work is in submission at a peer-reviewed journal. Several projects are underway to investigate and improve methods for eliciting consumer's values. One project aims to investigate the validity of an incentive compatible conjoint ranking mechanisms. Another project aims to investigate the validity of what we refer to as prediction-based non-market valuation. Data has been collected for both projects and results are being analyzed and written up.

Impacts
In recent years a pronounced trend has developed toward a more demand driven marketplace where agricultural producers must give considerable thought into consumer demand for specific food and fiber attributes prior to making production decisions. More research is needed to assist agricultural producers and agribusinesses in determining potential profitability of selling new goods and in responding to new and uncertain events such as a policy or animal disease. The primary purpose of this research is to determine the reaction of consumers and producers to and the social welfare effects of a) the introduction of new products, b) new food and agricultural policies, and c) agricultural events, such as BSE.

Publications

  • Feldkamp, T, T.C. Schroeder, and J.L. Lusk. "Determining Consumer Valuation of Quality Differentiated Beef Steak Attributes." Journal of Muscle Foods. 16(2005):1-15.
  • Lusk, J.L. and M. Rousu. "Market Price Endogeneity and Accuracy of Value Elicitation Mechanisms." in Using Experimental Methods in Environmental and Resource Economic. Ed. John A. List. Northhampton, MA: Edward Elgar Publishing (2006.)
  • Lusk, J.L., B. Norwood, and R. Pruitt. "Consumer Demand for a Ban on Subtherapeutic Antibiotic Use in Pork Production." American Journal of Agricultural Economics. 88(2006):1015-1033.
  • Nilsson, T., K. Foster, and J.L. Lusk. 2006. "Marketing Opportunities for Certified Pork." Canadian Journal of Agricultural Economics. 54(2006):567-583.
  • Lusk, J.L. and T.C. Schroeder. "Auctions Bids and Shopping Choices." Advances in Economic Analysis & Policy. 6(2006), No. 1, Article 4.
  • Lusk, J.L., J. Brown, T. Mark, I. Proseku, R. Thomson, and J. Welsh. "Consumer Behavior and Country of Origin Labeling." Review of Agricultural Economics. 28(2006):284-292.
  • Traill, W.B., W.M.S. Yee, J.L. Lusk, S.R. Jeager, L.O. House, B. Morrow, C. Vallli, M. Moore. "Perceptions of the Risks and Benefits of Genetically Modified Foods and their Influence on Willingness to Consume." Food Economics. 3(2006):12-19.
  • Lusk, J.L., W.B. Traill ,L.O. House, C. Valli, S.R. Jaeger, M. Moore, B. Morrow,. "Comparative Advantage in Demand: Experimental Evidence of Preferences for Genetically Modified Food in the United States and European Union." Journal of Agricultural Economics. 57(2006):1-21.
  • Norwood, B. and J.L. Lusk. "Instrument-Induced Bias in Donation Mechanisms: Evidence from the Field." Contributions in Economic Analysis & Policy. 5(2006), No. 2, Article 3.
  • Lusk, J.L and B. Norwood. "Modeling Beef Quality Heterogeneity." Journal of Agricultural and Applied Economics. 37(2005):603-18.
  • Lusk, J.L., L.O. House, C. Valli, S.R. Jaeger, M. Moore, B. Morrow, W.B. Traill "Consumer Welfare Effects of Introducing and Labeling Genetically Modified Food." Economics Letters. 88(2005):382-88.
  • Lusk, J.L. and A. Rozan. "Consumer Acceptance of Biotechnology and the Role of Second Generation Technologies in the US and Europe." TRENDS in Biotechnology. 23(2005):386-87.
  • Lusk, J.L. and B. Norwood. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates." American Journal of Agricultural Economics. 87(2005):771-785.
  • Hudson, D., K. Coble, and J.L. Lusk. "Consistency of Risk Premium Measures." Agricultural Economics. 33(2005):41-49.
  • Lusk, J.L. and K.O. Coble. "Risk Perceptions, Risk Preference, and Acceptance of Risky Food." American Journal of Agricultural Economics. 87(2005):393-405.
  • Lusk, J.L., M. Jamal, L. Kurlander, M. Roucan, L. Taulman. "A Meta Analysis of Genetically Modified Food Valuation Studies." Journal of Agricultural and Resource Economics. 30(2005):28-44.