2002 World Congress of Environmental and Resource Economists

We measure the effects of information conveyance on three related decision processes of the consumer: 1) the effects of information policies on risk perceptions, 2) the effects of information policies on the demand for seafood, and 3) the effects of information policies on willingness to pay for a seafood inspection program. Using response to a survey on seafood consumption and outbreaks of a potential harmful algal agent known as Pfiesteria, we find that announcement of an outbreak increases the perceived risks of seafood, decreases the demand for seafood, and increases the willingness to pay for a mandatory seafood inspection program. Information policies that assure the safety of seafood have little effect in restoring consumer confidence in seafood. Perceived negative information tends to decrease welfare by more than the counter effects of perceived positive information. Welfare losses are recovered through a seafood inspection program rather than safety announcements.



	Paper Title:	The Effects Of Information Conveyance On Risk Perceptions, Demand And Willingness To Pay
	Presenting Author:	John C Whitehead (UNC - Wilmington)
	Coauthor 1:	Timothy C Haab
	Coauthor 2:	George R Parsons
	Coauthor 3:
	Abstract:	We measure the effects of information conveyance on three related decision processes of the consumer: 1) the effects of information policies on risk perceptions, 2) the effects of information policies on the demand for seafood, and 3) the effects of information policies on willingness to pay for a seafood inspection program. Using response to a survey on seafood consumption and outbreaks of a potential harmful algal agent known as Pfiesteria, we find that announcement of an outbreak increases the perceived risks of seafood, decreases the demand for seafood, and increases the willingness to pay for a mandatory seafood inspection program. Information policies that assure the safety of seafood have little effect in restoring consumer confidence in seafood. Perceived negative information tends to decrease welfare by more than the counter effects of perceived positive information. Welfare losses are recovered through a seafood inspection program rather than safety announcements.
	Link to paper:	http://weber.ucsd.edu/~carsonvs/papers/277.pdf

	Session / Day / Time	2B / Monday / 10:15 - 11:45 am

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