Levan Elbakidze - Assistant Professor
Agricultural Economics and Rural Sociology
November 9 - Idaho Commons Whitewater Room
Abstract: Concerns pertaining to bioethics in agricultural production have been on the rise in recent years. This study uses non-hypothetical experimental auctions to elicit willingness to pay (WTP) for humane animal care certified cheese and ice cream. We use 2nr price and random Nth price auctions as well as Open Ended Choice Experiments in multi-product, multi-quantity, and multi-round context. Unlike previous applications of experimental auctions this study estimates WTP for multiple quantities rather than WTP for a single unit of a given product. The results contrast participants’ bids across different auction mechanisms and different products. Differences in bidding patterns are detected between auction mechanisms as well as products. Some WTP premium price for humane animal care certified ice cream is detected. However, no WTP premium price for humane animal care certified cheese is detected. The limitations and caveats of estimation results will be discussed.