Abstract
Social interactions may alter the purchase of fair-trade food products by triggering social- or self-image concerns. We identify these concerns by eliciting the willingness-to-pay (WTP) premium for fair-trade vs. non-fair-trade chocolate of subjects under various conditions. We find that both social- and self-image matter: (i) subjects' WTP premium for fair-trade is higher when their decisions are made public; and (ii) subjects revise this premium upward (downward) when their expectations about the premium of others increase (decrease). However, there are significant asymmetries. Making decisions public decreases the WTP for non-fair-trade chocolate rather than increases the WTP for fair-trade chocolate. Downward revisions of the premium are larger and more frequent than upward revisions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
