Doctor of Philosophy / Department of Agricultural Economics / John A. (Sean) Fox / The objective of this thesis is to investigate three design issues in experimental auctions: 1) the effects of allowing negative bids for a privately valued good, 2) the effects of introducing additional alternatives (substitutes) for the auctioned good in an endowment auction, and 3) respondent behavior in acquiring information. The thesis consists of three papers examining those issues. The first paper examines participants’ bidding behavior when negative bids are allowed for privately valued goods in an experimental auction. We focus on two questions: i) whether subjects with negative values tend to bid strategically – either overbidding or underbidding in an effort to enhancing earnings, and ii) the performance of random nth and 5th price auctions. We find that: a) WTP bids are demand revealing, b) subjects tend to underbid WTA values, c) controlling for risk attitude partially explains the bias in WTA bids, and d) negative values from random nth auctions tend to be below those from 5th price auctions. In the second paper we 1) investigate the effect of the availability of varying numbers of alternatives (substitutes) for a privately valued good on participants’ bidding behavior, and 2) identify whether the availability of additional alternatives: a) impacts the value of product information, and b) impacts the effect of new information on product valuations. We find that: a) allowing additional alternatives in a private value auction does not significantly decrease subjects’ bids, and b) the presence of additional alternatives in the auction decreases both the value and effect of product information. The third paper examines the effect of acquired information on auction participants’ bidding behavior. We focus on three questions: i) how subjects choose/value different types of information, ii) whether the value of acquired information about a product influences the subsequent valuation of the product itself, and iii) whether the effects of acquired information differ from those of exogenously provided information. We find that: a) subjects’ behaviors of acquiring different types of information about the product are influenced by their heterogeneous characteristics (i.e. prior beliefs, risk attitudes, prior knowledge, etc.), b) subjects place more weight on acquired information than on provided information in their decision-making process, and c) individual subjects have different values of information which caused different impacts on product valuation.

The use of functional foods by individuals to address health issues has become increasingly common. Pomegranate fruits and other pomegranate products contain phytochemicals, including several antioxidants that may have benefits when consumed as a functional food. The production of pomegranates in the United States is concentrated in California; yet pomegranates can be grown successfully in other regions. The purpose of this study was two-fold: 1) to address the market potential and consumer preferences for pomegranate fruits and other pomegranate products in Texas and 2) to address issues of experimental auction design and estimation in regards to novel products and health benefits of food products. A nonhypothetical experimental procedure was developed that combined preference rankings with a uniform nth-price auction to elicit preferences and willingness-to-pay (WTP) for pomegranate fruit products. Demographic and behavioral characteristics were collected from a representative sample of subjects in the Bryan-College Station area of Texas. Subjects submitted baseline preference rankings and bids on six pomegranate products and a control fruit product, all with the same retail price. Most participants had never purchased or tasted a pomegranate product. Additional information on the pomegranate products was provided in three forms: tasting information, health and nutrition information, and anti-cancer information. Subjects had the greatest WTP for the control product, followed by the juice product, followed by the ready-to-eat products; the whole pomegranate fruits had the lowest WTP. The preference rankings indicated the same order of preferences for the baseline round, but the ranking of the juice product dropped and the ranking of the ready-to-eat and Texas whole fruits rose when additional information was provided. Estimations of the WTP were done using random-effects tobit models and mixed linear models on the full bids and individual changes in bids. Unengaged bidders and bid censoring were addressed. Demographic variables were typically not predictors of WTP with the exception of previous purchases of pomegranates and household size. There were differences in WTP across information treatments, with tasting information having a greater effect than either health and nutrition information or anti-cancer information. Providing a reference price also increased WTP. Preference rankings were estimated using a rank-ordered logit and a mixed rank-ordered logit model. There was an interaction effect of each information treatment with the product characteristics, indicating that studies of effects of information treatments on preferences are not generalizable across products. There was divergence in the results for the preference rankings from the results of the experimental auction; preference rankings and bids gave different results for the same products.

The bison industry has limited resources for increasing market share. Exploring how consumers react to information about bison and discovering what people know about bison is important to determine the most efficient way to increase market share and ensure the sustainability of the bison industry. <p> This thesis examines the impact of three different information treatments on willingness-to-pay for bison. The three treatments are a nutritional comparison chart of negatively-perceived nutrients, a bison taste testimonial from a chef and a statement concerning the absence of growth hormones and antibiotics in the processed bison product used in the research. The hypothesis tested is that nutritional information about bison would elicit the greatest increase in willingness-to-pay for the processed bison product. <p> A random nth-price auction was conducted in December 2002 in Guelph, Ontario with 57 participants to elicit willingness-to-pay values for the processed bison product. Participants initial bids for the processed bison product were elicited without being given any information and a second round of bidding was conducted once participants had reviewed an information treatment. The mean difference in the bids between round two and round one are $0.221 for the nutritional comparison treatment, $0.210 for the taste testimonial treatment and $0.185 for the natural aspects treatment. ANOVA results indicate no statistically significant difference between the mean difference in bids between the three treatments. Further analysis with a regression model using the difference in bids as the dependent variable, dummy variables representing treatment types and survey data for the other relevant independent variables, shows that the coefficient for the nutritional comparison treatment is not significantly different from zero. Therefore, the hypothesis that nutritional information about bison would elicit the greatest increase in willingness-to-pay for the processed bison product has been rejected. The other independent variables examined in the regression are not significant. <p> This thesis does not clearly indicate which information treatment would be the most effective for the bison industry to utilize in a bison information campaign. However, each information treatment did increase the group mean willingness-to-pay so any information relevant to consumers about bison may be beneficial in increasing market share for bison products. Industry participants may need to work together to simultaneously increase awareness, distribution and consumption of bison products to ensure the sustainability of the bison industry.

The bison industry has limited resources for increasing market share. Exploring how consumers react to information about bison and discovering what people know about bison is important to determine the most efficient way to increase market share and ensure the sustainability of the bison industry. <p> This thesis examines the impact of three different information treatments on willingness-to-pay for bison. The three treatments are a nutritional comparison chart of negatively-perceived nutrients, a bison taste testimonial from a chef and a statement concerning the absence of growth hormones and antibiotics in the processed bison product used in the research. The hypothesis tested is that nutritional information about bison would elicit the greatest increase in willingness-to-pay for the processed bison product. <p> A random nth-price auction was conducted in December 2002 in Guelph, Ontario with 57 participants to elicit willingness-to-pay values for the processed bison product. Participants initial bids for the processed bison product were elicited without being given any information and a second round of bidding was conducted once participants had reviewed an information treatment. The mean difference in the bids between round two and round one are $0.221 for the nutritional comparison treatment, $0.210 for the taste testimonial treatment and $0.185 for the natural aspects treatment. ANOVA results indicate no statistically significant difference between the mean difference in bids between the three treatments. Further analysis with a regression model using the difference in bids as the dependent variable, dummy variables representing treatment types and survey data for the other relevant independent variables, shows that the coefficient for the nutritional comparison treatment is not significantly different from zero. Therefore, the hypothesis that nutritional information about bison would elicit the greatest increase in willingness-to-pay for the processed bison product has been rejected. The other independent variables examined in the regression are not significant. <p> This thesis does not clearly indicate which information treatment would be the most effective for the bison industry to utilize in a bison information campaign. However, each information treatment did increase the group mean willingness-to-pay so any information relevant to consumers about bison may be beneficial in increasing market share for bison products. Industry participants may need to work together to simultaneously increase awareness, distribution and consumption of bison products to ensure the sustainability of the bison industry.

abstract: Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze additional primary issues confronting the U.S. sugar industry. Chapters 1 and 2 provide an introduction to the U.S. sugar industry. Chapters 3 through 6 develop trade models which analyze sugar trade between Mexico and the U.S. The trade models estimate how NAFTA, USDA sugar forecast errors and Mexican ownership of twenty percent of the Mexican sugar industry each impact U.S. producer surplus and Mexican welfare. Results validate that U.S. producer surplus and in some instances Mexican welfare were decreased by full implementation of NAFTA. U.S. producer surplus and Mexican welfare were decreased due to USDA sugar production forecasting errors. U.S. producer surplus would be increased if the Mexican government did not own twenty percent of Mexican sugar production. Using an online choice experiment, Chapter 7 assesses U.S. consumers' preferences and willingness to pay (WTP) for imported and genetically modified (GM) labeled sugar and sugar in soft drinks. Results indicate that consumers prefer bags of sugar and soft drinks labeled as "Not GM". Furthermore, consumers prefer sugar from Canada and the U.S. over sugar from Mexico, Brazil and the Philippines. Evidence is also provided that participants are more likely to choose actual products in the choice set rather than the "none of these" options when controlling for hypothetical bias by using consequentiality techniques. A non-hypothetical experimental auction was used in Chapter 8 to determine consumers' WTP for soft drinks labeled with sweetener and calorie information and analyzed the role of taste panels in an experimental auction. Results indicate that sugar is consumers' most preferred sweetener and calorie labeling is ineffective at influencing consumers to choose healthier soft drinks. Including taste in an experimental auction caused significant reductions in consumers' WTP for all soft drinks. Chapter 9 concludes by summarizing the results of this dissertation and discussing the future challenges facing the U.S. sugar industry. / Dissertation/Thesis / Ph.D. Business Administration 2014

This research focuses on estimating the shift in consumer willingness to pay (WTP) a price premium/discount for Native warm season grassed beef and for Bermuda grassed beef, an exotic species to the U.S. We utilized sensory analysis and the Becker-Degroot-Marschak (BDM) mechanism to elicit consumers’ preference for four different types of beef to determine how the premiums/discounts consumers place on these differentiated products change across information regimes: perception, experience, and complete information. Subjects participated in the BDM mechanism three times to determine their WTP: once after observing the raw packaged product with standard labeling information, once after a blind taste sample of the products, and once after complete information has been provided that links the raw packaged product to the blind taste sample. Results revealed strong preferences for NWSGed beef regardless of finishing methods, and positive impacts of the sensory results and label information on grassinished beef steaks.

No description available.

This thesis consists of two essays that each discuss a major component of the post-harvest management of maize in sub-Saharan Africa: drying and storage. The first essay uses cross-country data about on-farm storage decisions between 2013 and 2015 to assess the severity of storage loss in the absence of improved storage technologies. We find that while losses are low, farmers report on average that they lose more than expected and sell earlier than originally intended at harvest. Additionally, we look for evidence that farmers use adaptation strategies for the purpose of mitigating storage loss and find that storage chemicals are effective at both reducing loss and increasing storage duration. The second essay introduces a third-party moisture testing service to traders in western Kenya to elicit willingness to pay for external quality verification using two moisture detection devices, a low-cost hygrometer and a commercial grade moisture meter. We find that while traders value the moisture meter service more, the hygrometer service is more profitable for potential service providers. Further, when offered a chance to purchase the hygrometer device at/around market price ($2.50), only 15% of traders accepted the offer, suggesting that a service provider model is a viable way to make moisture testing more widely accessible and standard practice in the future.

Submitted by Marcos Paulo de Jesus (mpj@gvmail.br) on 2018-07-11T20:46:04Z No. of bitstreams: 1 Jesus - Um estudo de caso entre 3 tipos de leilão reverso sob a perspectiva de uma organização de compras.pdf: 883117 bytes, checksum: 78501c0ba874ec5e74051216e041b45a (MD5) / Approved for entry into archive by Mayara Costa de Sousa (mayara.sousa@fgv.br) on 2018-07-13T22:22:34Z (GMT) No. of bitstreams: 1 Jesus - Um estudo de caso entre 3 tipos de leilão reverso sob a perspectiva de uma organização de compras.pdf: 883117 bytes, checksum: 78501c0ba874ec5e74051216e041b45a (MD5) / Approved for entry into archive by Suzane Guimarães (suzane.guimaraes@fgv.br) on 2018-07-16T13:29:20Z (GMT) No. of bitstreams: 1 Jesus - Um estudo de caso entre 3 tipos de leilão reverso sob a perspectiva de uma organização de compras.pdf: 883117 bytes, checksum: 78501c0ba874ec5e74051216e041b45a (MD5) / Made available in DSpace on 2018-07-16T13:29:20Z (GMT). No. of bitstreams: 1 Jesus - Um estudo de caso entre 3 tipos de leilão reverso sob a perspectiva de uma organização de compras.pdf: 883117 bytes, checksum: 78501c0ba874ec5e74051216e041b45a (MD5) Previous issue date: 2018-06-11 / Essa dissertação é um estudo de caso experimental em laboratório com três tipos de leilão reverso, visando aplicar as lições aprendidas no experimento a um caso real. Como há diversos tipos de leilão disponíveis, selecionar a modalidade mais indicada para um processo de compras torna-se um problema relevante para que uma empresa compradora consiga o melhor resultado do ponto de vista de redução de custo e continuidade do negócio. Fundamentado nisso, o objetivo dessa dissertação é identificar qual a modalidade de leilão pode trazer o melhor resultado do ponto de vista da empresa que está realizando a compra. Dessa forma, foi selecionado um item específico a ser comprado pela empresa, nesse caso um serviço de transporte de carga excedentes, e solicitado a fornecedores selecionados que enviassem propostas de fornecimento com o objetivo de atender à solicitação de cotação (RFQ, ou request for quotation) e, baseado nessas propostas, foi elaborada uma série de simulações em laboratório de três tipos de leilão: leilão reverso inglês, leilão reverso japonês e leilão de primeiro preço em envelope fechado. Após a execução desse experimento, foi selecionada a modalidade de leilão que gerou os melhores resultados esperados pela companhia, nesse caso o menor lance entre os participantes, e aplicada em um caso real, cujo resultado foi reportado nesse trabalho para enriquecer a aplicabilidade dessa dissertação. Com base nesses resultados foi possível comparar o efeito de redução de custos entre esses três tipos de leilão para então aplicá-los em situações futuras. / This dissertation is an experimental case study with three different types of reverse auction in a laboratory aiming to apply the lessons learned in the simulations to a real case. As there are several auctions types available in the software used by companies, selecting the most suitable type for a specific procurement process becomes a relevant problem for a company aiming to get the best result regarding cost reduction and business continuity. Based on that, the goal of this dissertation is to identify which type of auction may lead to the best result from the perspective of the buyer. Thus, it was selected one specific item to be purchased by the company, in this case heavy lift transportation services and it was asked to some suppliers to submit proposals to meet the request for quotation (RFQ). Based on these proposals, it was designed a series of auctions simulations in a laboratory of three types of auctions (reverse English auction, reverse Japanese auction and first price sealed envelope auction). After the performance of these simulations in a laboratory, the type of auction that generated the best results expected by the company, in this case the one with the lowest winning bid from bidders, was selected, applied in a real case situation and the result was reported to enrich the application of this dissertation. Based on these results it is possible to infer the cost reduction effect of these three types of auction and apply it further in the procurement processes.