Quantifying the effect of market information on demand for genetically modified salmon

Abstract

We investigate how production process labels and information about potential positive and/or negative aspects of GM technology affects demand for novel seafood products. We collected data during an online choice experiment distributed among 1,043 United States seafood consumers. Our results indicate participants not provided with GM information are willing to pay a premium for Verified Non-GM and Organic fillets, but require a discount for Fed-GM and GM fillets. Positive information reduces willingness to pay (WTP) for Organic, Non-GM and GM fillets, while negative information significantly increases WTP for Organic fillets and reduces WTP for GM fillets. Balanced information reduces WTP for Organic and Verified Non-GM salmon, similar in magnitude to positive information, and reduces WTP for GM-Fed and GM salmon, similar in magnitude to negative information. We provide some recommendations and discussion on how producers and food sellers might encourage effective communication between themselves and consumers based on our findings and the broader literature.

Keywords:

• Choice experiment
• consumer behavior
• food labeling
• genetic modification
• salmon

Acknowledgments

The authors thank Ben Blachly, Jason Walsh, Vasu Gaur, David Bidwell, Kristen Demoranville, participants at the 2019 North American Association of Fisheries Economists Forum, and the anonymous reviewers for helpful comments and suggestions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 We did estimate models assuming price to be distributed triangular and normal, both of which had qualitatively similar results to the model presented herein.

Additional information

Funding

This work was partially supported by the University of Rhode Island Coastal Institute.