Measuring the value of information - revealed preferences for country of origin information

摘要

Standard economic theory assigns a value to information based solely on its ability to improve decision-making, assuming information generates a positive value if it changes behavior. But evidence from recent behavioral economic studies finds that information can evoke negative emotions. This suggests information may harm some consumers, even if it changes their behavior. In this study, we design an economic experiment to more directly test information preferences - we examine consumers' revealed choices to take or ignore information on country of origin. As expected from standard economic theory, we find the majority of consumers (80 percent) positively value free origin information. Second, the value of learning the origin increases as food safety benefits of local products are communicated, i.e. as the utility gain of making the "right" choice increases, so does the value of information that ensures this choice. Third, we find no evidence that observed origin information avoidance is driven by emotional costs of the information. Our results support the standard assumptions of information primarily as a means to optimal decision-making. Further, mandatory origin information policies may benefit consumers, and this benefit increases as consumers are made aware of the food safety benefits of local production.