Information and Consumer Willingness to Pay for Biofortified Yellow Cassava: Evidence from Experimental Auctions in Nigeria. HarvestPlus Working Paper 13
In this paper we use the Becker-deGroot-Marschak auction mechanism to estimate consumer demand for biofortified yellow cassava varieties in two states of Nigeria: Imo in the southeast and Oyo in the southwest. These two states exhibit distinct habitual product color preferences for staple food made with cassava. We estimate the effect of nutrition information campaigns and nature of planting material delivery institutions on consumer demand. Willingness to pay estimation accounted for the effect of product endowment censoring in bids and payment. Without a nutrition information campaign, biofortified varieties are unlikely to be accepted in the southeast as they are associated with substantial discounts. In the southwest, consumers are willing to pay a premium for light yellow biofortified cassava varieties even in the absence of nutrition information. The paper finds that nutrition information results in a large and significant price premium for biofortified yellow cassava in both states, but the nature of delivery institution has a small effect in the southwest only.
Oparinde, A.; Banerji, A.; Birol, E.; Ilona, P. Information and Consumer Willingness to Pay for Biofortified Yellow Cassava: Evidence from Experimental Auctions in Nigeria. HarvestPlus Working Paper 13. (2014) 26 pp.