Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria

We study the impact of endowments and expectations on reference point formation and measure the value of food safety certification in the context of fish trading on real markets in Nigeria. In our field experiment, consumers can trade a known food item for a novel food item that is superior in terms...

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Autores principales: Shikuku, Kelvin Mashisia, Bulte, Erwin, Lagerkvist, Carl Johan, Nhuong Tran
Formato: Journal Article
Lenguaje:Inglés
Publicado: Cambridge University Press 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/132583
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author Shikuku, Kelvin Mashisia
Bulte, Erwin
Lagerkvist, Carl Johan
Nhuong Tran
author_browse Bulte, Erwin
Lagerkvist, Carl Johan
Nhuong Tran
Shikuku, Kelvin Mashisia
author_facet Shikuku, Kelvin Mashisia
Bulte, Erwin
Lagerkvist, Carl Johan
Nhuong Tran
author_sort Shikuku, Kelvin Mashisia
collection Repository of Agricultural Research Outputs (CGSpace)
description We study the impact of endowments and expectations on reference point formation and measure the value of food safety certification in the context of fish trading on real markets in Nigeria. In our field experiment, consumers can trade a known food item for a novel food item that is superior in terms of food safety––or vice versa. Endowments matter for reference point formation, but we also document a reverse endowment effect for a subsample of respondents. The effect of expectations about future ownership is weak and mixed. While expectations seem to affect bidding behavior for subjects “trading up” to obtain the certified food product (a marginally significant effect), it does not affect bids for subjects “trading down” to give up this novel food item. Finally, willingness to pay for safety certified food is large for our respondents—our estimate of the premium is bounded between 37 and 53% of the price of conventional, uncertified food.
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publishDate 2023
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spelling CGSpace1325832025-10-26T12:51:33Z Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria Shikuku, Kelvin Mashisia Bulte, Erwin Lagerkvist, Carl Johan Nhuong Tran certification consumers economics finance fish food safety markets nigeria ownership trade We study the impact of endowments and expectations on reference point formation and measure the value of food safety certification in the context of fish trading on real markets in Nigeria. In our field experiment, consumers can trade a known food item for a novel food item that is superior in terms of food safety––or vice versa. Endowments matter for reference point formation, but we also document a reverse endowment effect for a subsample of respondents. The effect of expectations about future ownership is weak and mixed. While expectations seem to affect bidding behavior for subjects “trading up” to obtain the certified food product (a marginally significant effect), it does not affect bids for subjects “trading down” to give up this novel food item. Finally, willingness to pay for safety certified food is large for our respondents—our estimate of the premium is bounded between 37 and 53% of the price of conventional, uncertified food. 2023-11 2023-10-31T12:27:34Z 2023-10-31T12:27:34Z Journal Article https://hdl.handle.net/10568/132583 en Open Access Cambridge University Press Shikuku, K.M., Bulte, E., Lagerkvist, C.J. and Nhuong Tran. 2023. Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria. Experimental Economics
spellingShingle certification
consumers
economics
finance
fish
food safety
markets
nigeria
ownership
trade
Shikuku, Kelvin Mashisia
Bulte, Erwin
Lagerkvist, Carl Johan
Nhuong Tran
Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title_full Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title_fullStr Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title_full_unstemmed Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title_short Endowments, expectations, and the value of food safety certification: experimental evidence from fish markets in Nigeria
title_sort endowments expectations and the value of food safety certification experimental evidence from fish markets in nigeria
topic certification
consumers
economics
finance
fish
food safety
markets
nigeria
ownership
trade
url https://hdl.handle.net/10568/132583
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