This report analyzes consumer willingness to pay to reduce food-borne risks, focusing on consumer choice between organically and conventionally grown produce. It uses two alternative methodologies: a revealed preference analysis of actual market choices, and an exploratory contingent valuation survey administered to focus-group participants. Overall, the study confirms the possibility of deriving reasonable estimates of the additional value consumers place on organically grown produce. However, the extremely uncertain estimates of the risk avoided by choosing organically grown foods limits the ability to reliably estimate consumer willingness to pay for actual risk reduction.
This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.