Rousu MC, Monchuk DC, Shogren JF, Kosa KM. Consumer willingness to pay for “second generation” genetically engineered products and the role of market information. J Agr Appl Econ. 2005 Dec;37(3):647-57. doi: 10.1017/S1074070800027140.


Environmental and consumer groups have called for mandatory labeling of genetically engineered (GE) food products in the United States, stating that consumers have the “right to know.” Herein, we use a nonhypothetical field experiment to examine the willingness to pay for GE-labeled products, using the only second-generation GE product currently on the U.S. market—GE cigarettes. Our results suggest consumers pay less for GE-labeled cigarettes when marketing information is absent. But, when presented with marketing information on the attributes of the cigarette, we find no evidence that consumers pay less for GE-labeled cigarettes.

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