Consumer Valuations of Beef Steak Food Safety Enhancement in Canada, Japan, Mexico, and the United States
2009
Food safety concerns have had dramatic impacts on food and livestock markets in recent years. We examine consumer preferences for beef steak food safety assurances. We evaluate the extent to which preferences are heterogeneous within and across country-of-residence defined groups and examine the distributional nature of preferences with respect to marginal improvements in food safety. Using mixed logit models, we find that consumers in Canada, Japan, Mexico, and the United States have willingness to pay preferences that are nonlinear in the level of food safety risk reduction. In particular, consumers in Japan and Mexico have preferences that are convex and consumers in Canada and the United States have preferences concave in the level of food safety enhancement.
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