Consumers’ assessment of labelled and packaged fresh potato: Evidence from Experimental Auctions

Abstract

Worldwide, the potato is the third more important crop, coming after wheat and rice. In Argentina, it is the horticultural product with the highest consumption in fresh state, but Argentine consumers know little to nothing about potatoes attributes.The objective of this research is to identify the attributes that influence the assessment that consumers make of a potato with differentiated quality. Due to this, a Vickrey Second Price Experimental Auction took place in April 2017. The experiment involved 155 participants, who were students and employees of the School of Economic and Social Sciences of the National University of Mar del Plata. A Multiple Correspondence Analysis was applied based on the data of the bids and the survey carried out at the Auction.The main results showed that the participants, after receiving information about the culinary aptitude of the differentiated potato and its production method – its lower content of agrochemicals –, were willing to pay a higher price for the product. Additionally, participants opted for a higher price of potato when it was presented in a labelled package. Likewise, an identify group of participants were shown to be willing to pay more for this differentiated food.

Keywords

• food produced with less use agrochemical
• attributes
• differentiated quality
• experimental economics