Adverse Selection Revisited in the Context of Food Safety

Kawata, Yukichika

doi:10.5539/ibr.v6n11p160

Cited by 3 publications

(4 citation statements)

References 19 publications

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“…Moreover, animal welfare is a credence good because consumers making their buying decision in the supermarket cannot see or taste whether a product is produced with a higher level of animal welfare (Lusk & Norwood, 2011). Consequently, the market for animal products may suffer from information asymmetry, resulting in adverse selection (Kawata, 2013;Verbeke, 2005). Hence, the actual behavior of consumers may be driven by private concerns only, resulting in market outcomes that do not necessarily satisfy public concerns (Carlsson, Frykblom, & Lagerkvist, 2007a).…”

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confidence: 99%

Dutch Consumers’ Willingness to Pay for Broiler Welfare

Mulder

Zomer

2017

Journal of Applied Animal Welfare Science

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This article analyzes Dutch consumers' willingness to pay (WTP) for the welfare of broiler chickens and the consequences for nonhuman animal welfare policies. Using data from a discrete-choice experiment and a random parameter logit model, this study showed that consumers particularly value opportunities for outdoor access and the method used for anesthesia before slaughter. The WTP was also positively related to the number of consumers buying the same product, indicating that they experience the public-good dilemma. Moreover, the WTP was higher if consumers knew that animal welfare practices were subject to public or collective supervision. Women, people with more education, those with higher income, and nonreligious people had relatively high WTP values. For 87.5% of the respondents, the WTP exceeded the price difference between a broiler with a higher level of animal welfare and a regular chicken. The findings suggest that the Dutch market for broiler chickens can be improved by raising consumer confidence in the labeling system.

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confidence: 99%

Dutch Consumers’ Willingness to Pay for Broiler Welfare

Mulder

Zomer

2017

Journal of Applied Animal Welfare Science

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Section: Introductionmentioning

confidence: 99%

“…Animal welfare is a credence good because consumers making their buying decisions in the supermarket cannot see or taste whether a product is produced with a higher level of animal welfare (Lusk and Norwood, 2011). Consequently, animal product market may suffer from information asymmetry, resulting in adverse selection (Kawata, 2013;Verbeke, 2005). Pouta et al (2010) used a choice experiment to analyse the importance of production methods, such as organic production and methods emphasising animal welfare, consumer health and country of origin, in selection of broiler meat by Finnish consumers.…”

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confidence: 99%

Effect of cognitive bias on the consumption of broiler products in China; the role of information acquisition channels

Lin,

Li,

et al. 2023

BFJ

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PurposeBroiler meat is the most commonly used meat product worldwide. Although China is regarded as one of the three largest broiler producers, the per capita chicken consumption remains low. Consumers' cognitive bias and the information acquisition channels are believed to be the main factors contributing to this. This paper aims to discuss the aforementioned issue.Design/methodology/approachTo explore the phenomenon empirically, the current study uses the survey data of 1,056 consumers from China and analyses them using ordered logistic regression.FindingsThe results revealed that consumers' cognitive bias significantly affects their behaviour toward broiler products, and the order of influence is cognitive bias regarding industry cognitive > product nutrition and taste > food safety. The study further revealed that the more diverse the information acquisition channels, the more likely they are to promote consumer behaviour toward broiler chickens. The order of influence of the channels was self-organising > new media > traditional media.Practical implicationsOverall, the findings suggest that the government and enterprises should strengthen and upgrade information channels to boost both the broiler industry and consumer consumption behaviour regarding poultry products.Originality/valueRather than the usual focus on the impact of consumer cognition on consumer behaviour, this study examines the impact of cognitive bias on consumer behaviour. Further, centring on broiler products with high protein, low fat and feed-to-meat ratios, this study explores the reasons the per capita consumption of broiler products in China is far lower than the national average.

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“…First, from the farmer's perspective, the agricultural market is similar to the lemon market, and farmers will act opportunistically to maximize profits and thus create moral hazard problems [15]. Measures such as vertical integration [16], increasing the production costs of adverse selection and education [17] and training for farmers can promote the adoption of low-carbon production technologies by farmers [18]. The second is the government's pursuit of social welfare maximization in food safety at source, the use of the "visible hand" to regulate the market [19], and the establishment of a legal system for agricultural quality and safety (punishment and integrity mechanisms) [20], the integration and coordination of government departments in supervision [21] and the construction of a guarantee system (standardization, certification system, traceability system, early warning system) [22] are considered as effective measures for food safety governance at source; third, consumers pursue personal utility maximization in the agricultural market and attributes such as greenness and safety of carbon labeled agricultural products are organic components of consumer utility [23], and awareness of agricultural quality and safety [24], urban-rural disparity [25], education level [26], food safety information disclosure [27], and income disparity [28], are considered to be influential factors affecting consumers' purchase of carbon labeled agricultural products.…”

Section: Introductionmentioning

confidence: 99%

The Evolutionary Game Analysis of Low Carbon Production Behaviour of Farmers, Government and Consumers in Food Safety Source Governance

Xie

Shao‐Horn

2022

IJERPH

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Whether the quality of agricultural products is safe or not is related to issues of food safety and low carbon production in agriculture. Based on evolutionary game theory, this paper establishes a game model among government, farmers and consumers and analyzes the dynamic evolutionary process and evolutionary stable strategies of the major stakeholders. The results show that: (i) government subsidy coefficient, farmers’ penalty coefficient for not producing, consumer trust coefficient and willingness to pay carbon labelled agricultural products premium are positively related to farmers’ adoption of low-carbon production behaviour, and fraud penalty coefficient and farmers’ cost of adopting low-carbon production technology are negatively related; (ii) farmers’ sensitivity to government regulation policies is: fraud penalty coefficient = farmers’ cost of adopting low-carbon production technology > government subsidy The sensitivity of farmers to government regulation policies is: fraud penalty coefficient = cost of low-carbon production technology > government subsidy > penalty coefficient for non-production, and the sensitivity of farmers to direct market stimulation is: consumer trust coefficient > coefficient of willingness to pay premium for carbon labelled agricultural products, and the additional benefit coefficient has no significant effect on farmers’ decision-making; (iii) In the early stage, the source control of food safety mainly depends on the government’s policy intervention. In the later stage, the establishment of carbon label agricultural products market incentive mechanism can achieve long-term stable and effective source control of food safety.

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Adverse Selection Revisited in the Context of Food Safety

Cited by 3 publications

References 19 publications

Dutch Consumers’ Willingness to Pay for Broiler Welfare

Dutch Consumers’ Willingness to Pay for Broiler Welfare

Effect of cognitive bias on the consumption of broiler products in China; the role of information acquisition channels

The Evolutionary Game Analysis of Low Carbon Production Behaviour of Farmers, Government and Consumers in Food Safety Source Governance

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