Agricultural Economics Department

 

Cornhusker Economics

Date of this Version

March 2001

Document Type

Article

Comments

Published in Cornhusker Economics. March 21, 2001. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska-Lincoln .

Abstract

This article summarizes the major findings of a just completed agricultural economics dissertation research project that analyzed consumers' perceptions of beef flavor, and more importantly, their willingness-to-pay for various flavor preferences. The research was conducted jointly with the Animal Science Department at UNL. A novel experimental design was used to determine consumers willingness-to-pay for their flavor preferences. After tasting various steak samples, consumers were given the opportunity to bid on and purchase steaks from the same sample. The experimental auction was a sealed-bid, fourth-price auction (similar to a Vickrey auction) where the fourth highest bid determined the market price and the top three bidders all purchased steaks at the market price.

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