Preferences and the home bias in trade

Morey, Mitchell

doi:10.1016/j.jdeveco.2016.01.007

Cited by 23 publications

(17 citation statements)

References 17 publications

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“…In a trade study, Armington (1969) first proposed that home and foreign goods were differentiated based purely on the origin of their production and that consumers favored goods produced in their home countries. Morey (2016) recently verified that consumers place greater value on items produced in their own country when origin was the only tangible difference in the products. Numerous studies have shown that consumers are often willing to pay a premium for fresh food products produced within the region in which they live (Grebitus, Lusk, & Nayga, 2013; Jekanowski, Williams, & Schiek, 2000; Peterson, Taylor, & Baudouin, 2015; Toler, Briggeman, Lusk, & Adams, 2009).…”

Section: Introductionmentioning

confidence: 99%

Preferences for local food: Tourists versus local residents

Messer

Mamadzhanov

et al. 2020

Canadian J Agri Economics

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This study examines preferences for local foods by two distinct consumer groups: local residents and tourists. In an incentive‐compatible framed field experiment, a series of dichotomous‐choice tasks involving oyster purchases were completed by 758 individuals: 341 local residents recruited at a Division of Motor Vehicles office and 417 tourists recruited at a beach ferry terminal. The experimental design allowed us to investigate differences in preferences between tourists and local residents for locally produced oysters. Our estimates suggest both locals and tourists are willing to pay more for local oysters than for nonlocal ones, though this result is only statistically significant among tourists. The findings from this study shed light on potential designs for labels of food products, particularly when marketed in popular tourism areas.

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Section: Introductionmentioning

confidence: 99%

Preferences for local food: Tourists versus local residents

Messer

Mamadzhanov

et al. 2020

Canadian J Agri Economics

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“…9 9The mechanism has already been widely used in laboratory settings, and also in field experiments to elicit consumer preferences for such diverse items as meat quality, solar kits, rice origin, mosquito nets, water and hygiene, and rainfall insurance (Lusk et al 2001; Hoffmann 2009; Cole, Stein, and Tobacman 2014; Guiteras et al 2016; Morey 2016; Alem and Dugoua 2018; Grimm et al 2018). …”

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confidence: 99%

One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal

Bensch¹,

Peters²

2019

American J Agri Economics

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Free technology distribution can be an effective development policy instrument if market-driven adoption is socially inefficient and hampered by affordability constraints. Yet, policy makers often oppose free distribution, arguing that reference dependence lowers the willingness to pay (WTP) and thus hinders market potentials in the long run. For improved cookstoves, this paper studies the WTP six years after a randomized one-time free distribution in 2009. We demonstrate that the cookstoves were intensely used by the treatment group households in the years after randomization until they reached their designated lifetime. Using a real-purchase offer, we find that both treatment and control households reveal a remarkably high WTP in 2015. The estimated confidence interval suggests that we can exclude a substantial negative effect on the treatment group. The policy implication is that one-time free distribution does not necessarily undermine future market establishment, and thus can be an effective policy instrument if rapid dissemination is the objective.

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“…Also note that villagers are not unfamiliar with paying for cookstoves: while the widely used three-stone stove is free of any monetary charge, around 82 percent of sampled households have paid for a stove in the past.9 The mechanism has already been widely used in laboratory settings, but also in field experiments to elicit consumer preferences for such diverse items as meat quality, rice origin, mosquito nets, water and hygiene, and rainfall insurances(Guiteras et al 2016;Lusk et al 2001;Morey 2016;Hoffmann 2009;Cole et al, 2014).…”

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confidence: 99%

One-off Subsidies and Long-run Adoption – Experimental Evidence on Improved Cooking Stoves in Senegal

Bensch

Peters

2018

SSRN Journal

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Free distribution of a technology can be an effective development policy instrument if its adoption is socially inefficient and hampered by affordability constraints. Improved cookstoves may be such a case: they generate high environmental and public health returns, but adoption is generally low. Based on a randomized controlled trial in rural Senegal, this paper studies whether one-time free cookstove distribution affects households' willingness to pay (WTP) in the long run. Effects might be negative because people anchor their WTP on the earlier zero price (reference dependence) or positive because information deficits about potential benefits are overcome. We find that households who received a free stove six years back exhibit a higher WTP today compared to control households. Potential reference dependence effects are thus at least compensated by learning effects. Our findings suggest that one-time free distribution does not spoil future prices and might even be a stepping stone for future market establishment.

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Preferences and the home bias in trade

Cited by 23 publications

References 17 publications

Preferences for local food: Tourists versus local residents

Preferences for local food: Tourists versus local residents

One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal

One-off Subsidies and Long-run Adoption – Experimental Evidence on Improved Cooking Stoves in Senegal

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