nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2012‒02‒08
one paper chosen by
Philip Yu
Hong Kong University

  1. Willingness to Pay for Imported Beef and Risk Perception: An application of Individual-Level Parameter By Lim, Kar Ho; Hu, Wuyang; Maynard, Leigh; Goddard, Ellen

  1. By: Lim, Kar Ho; Hu, Wuyang; Maynard, Leigh; Goddard, Ellen
    Abstract: The controversy surrounding the Mandatory Country-of-Origin Labeling (COOL) has attracted research attentions. A number of studies have reported consumers are willing to pay more for beef labeled with U.S. origin versus beef from unknown or other origins. Despite that, relatively little is known about what motivates consumersâ preference for origin-labeled food products (Lusk et al 2006). Using Individual-Level Parameters following a mixed logit model, we found that U.S. consumers were willing to pay significantly less for imported steak from Australia and Canada compare to U.S. steak. Further, we found that the negative willingness to pay is associated strongly with consumersâ perception of food safety on the exporting country.
    Keywords: beef, country of origin, mixed logit, individual-level parameters, stated choice experiment, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Marketing, Q13, Q18,
    Date: 2012–01–17

This nep-dcm issue is ©2012 by Philip Yu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.