Discounting Spotted Apples : Investigating Consumers ’ Willingness to Accept Cosmetic Damage in an Organic Product

@inproceedings{Yue2006DiscountingSA,
  title={Discounting Spotted Apples : Investigating Consumers ’ Willingness to Accept Cosmetic Damage in an Organic Product},
  author={Chengyan Yue and Frode Alfnes and Helen H. Jensen},
  year={2006}
}
Organic producers have limited methods of avoiding plant diseases that result in cosmetic damage to produce. Therefore, the appearance of organic produce is often less than perfect. We use an experimental auction to investigate how cosmetic damage affects consumers’ willingness to pay for organic apples. We find that 75% of the participants are willing to pay more for organic than for conventional apples given identical appearance. However, at the first sight of any imperfection in the… CONTINUE READING
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