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A Nonhypothetical Ranking and Auction Mechanism for Novel Products

Published online by Cambridge University Press:  26 January 2015

Callie McAdams
Informa Economics, McLean, Virginia
Marco A. Palma
Department of Agricultural Economics, Texas A&M University, College Station, Texas
Charles Hall
Department of Horticultural Sciences, and Holder of the Ellison Chair in International Floriculture, Texas A&M University, College Station, Texas
Ariun Ishdorj
Department of Agricultural Economics, Texas A&M University, College Station, Texas
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Preferences for pomegranates, including some novel pomegranate varieties, were evaluated using an experimental auction and nonhypothetical preference ranking mechanism. Additional information on the taste and health benefits of the products was provided to mimic the information-gathering process on novel products. Product familiarity, product information, and reference prices were key factors in explaining willingness to pay for the included novel products. Results from the auction and nonhypothetical preference ranking procedures were divergent. Furthermore, interactions were detected between information treatments and product characteristics.

Research Article
Copyright © Southern Agricultural Economics Association 2013

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