Journal Article

Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences

Gary D. Thompson and Julia Kidwell

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 80, issue 2, pages 277-287
Published in print May 1998 | ISSN: 0002-9092
Published online May 1998 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244500
Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences

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  • Household Behaviour and Family Economics
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The choice between organic and conventional produce was estimated empirically using a two-equation probit model. Data were collected in-store on cosmetic defects, produce prices, and consumers' demographic and economic traits. Store choice displayed a significant impact on the probability of purchasing organic produce. Shoppers at the specialty grocer were sensitive to price differences between organic and conventional items. Households with children under eighteen were more likely to purchase organic produce while shoppers with graduate or professional degrees were less likely to do so. Differences in cosmetic defects had statistically significant albeit small effects on the probability of purchasing organics.

Keywords: cosmetic defects; organic produce; two-equation probit model; weak exogeneity; D120; Q110

Journal Article.  0 words. 

Subjects: Household Behaviour and Family Economics ; Agricultural Economics

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