2002 World Congress of Environmental and Resource Economists

The main objective of this article is to give some experimental results about a food safety valuation relative to products controlled in heavy metals contents. The determination of heavy metals-related food risk requires an understanding of how heavy metals can contaminate humans via the food chain. Some agricultural practices may involve potential food residual contamination and toxic effects in the long term for human health. The entire population is concerned through the consumption of vegetables, beverages and meat. The aim of our study is to understand the process whereby consumers update their WTP for labelled and unlabelled products when they are provided with new information. Two (theoretically) equivalent elicitation procedures were used : the Becker-DeGroot-Marschak (BDM)procedure and the second price auction (Vickrey auction). The principal result shows that subjects significantly update their valuation by simultaneously decreasing their WTP for unlabelled products and increasing their WTP for labelled products. This update is observed whatever the elicitation procedures.



	Paper Title:	The Effect Of Heavy Metal Content On Food Pricing Behaviour: BDM Versus Second Price Auction
	Presenting Author:	Anne Rozan (B.E.T.A.-ULP)
	Coauthor 1:	Anne Stenger
	Coauthor 2:	Marc Willinger
	Coauthor 3:
	Abstract:	The main objective of this article is to give some experimental results about a food safety valuation relative to products controlled in heavy metals contents. The determination of heavy metals-related food risk requires an understanding of how heavy metals can contaminate humans via the food chain. Some agricultural practices may involve potential food residual contamination and toxic effects in the long term for human health. The entire population is concerned through the consumption of vegetables, beverages and meat. The aim of our study is to understand the process whereby consumers update their WTP for labelled and unlabelled products when they are provided with new information. Two (theoretically) equivalent elicitation procedures were used : the Becker-DeGroot-Marschak (BDM)procedure and the second price auction (Vickrey auction). The principal result shows that subjects significantly update their valuation by simultaneously decreasing their WTP for unlabelled products and increasing their WTP for labelled products. This update is observed whatever the elicitation procedures.
	Link to paper:	Not available

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

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