This paper investigates Willingness to Accept (WTA) Genetic Modification (GM) foods based on experimental auctions carried out in the USA, UK and France. It explores perceptions of risk and benefits, moral concerns and their antecedents, attitudes to the environment and technology and trust in various sources using Structural Equation Modelling (SEM). Trust in information provided by industry proved to be the most important determinant of risk/benefit perceptions and WTA followed by general attitudes to the environment and technology. Education and age are also enhance perceived benefits and lower perceived risks of GM. Perception of risk/benefit and moral concerns all have significant effects on consumers' WTA but the perceived benefits are most important. The research suggests that trust-building by industry would be the most effective in enhancing GM acceptance.

Non-hypothetical valuations obtained from experimental auctions in three United States and two European locations were used to calculate welfare effects of introducing and labeling of genetically modified food. Under certain assumptions, we find that introduction of genetically modified food has been welfare enhancing, on average, for United States consumers but not so for Europeans and while mandatory labeling has been beneficial for European consumers, such a policy would be detrimental in the United States.

*Authors are Associate Professor, Department of Food and Resource Economics, University of Florida; Associate Professor, Department of Agricultural Economics, Purdue University; Assistant Professor, Department of Marketing, University of Auckland; Professor, Department of Agricultural and Food Economics, University of Reading; Research Associate, University of Florence; Assistant Professor, Department of Marketing, Quantitative Analysis and Business Law, Mississippi State University; Assistant Professor, Department of Business Administration, Birmingham Southern College; and Research Associate, Department of Agricultural and Food Economics, University of Reading, respectively. This research was partially funded by USDAIFAFS grant #00-52100-9620.

This study investigates the effect of information about potential benefits of biotechnology on consumer acceptance of genetically modified (GM) foods. Consumer willingness to accept compensation to consume a GM food was elicited using an incentive compatible auction mechanism in three US states (California, Florida, and Texas) and in two European countries (England and France). Results indicate that information on environmental benefits, health benefits and benefits to the third world significantly decreased the amount of money consumers demanded to consume GM food; however, the effect of information varied by type of information and location. Consistent with prior research, we find that initial attitudes toward biotechnology have a significant effect on how individuals responded to new information.

Abstract In an effort to understand consumer,acceptance of and willingness to pay for genetically modified food products, we propose a model of consumer acceptance of GM foods. The model is synthesized from literature on consumer acceptance reviewed in the paper. The paper suggests that consumer,acceptance mediates the relationship between three key antecedent variables and a consumer’s willingness to pay for GM foods. This model treats consumer,acceptance and a consumer’s willingness to purchase are two distinct constructs. As noted in the model, we expect consumer acceptance to be impacted by three key antecedents: trust, benefits, and social norms. Modeling Consumer Acceptance of and Willingness to Pay for Genetically-Modified Foods in the United States and the European Union After years of research by private companies and public institutions, products derived from agricultural biotechnology are reaching consumers, and becoming an increasing subject of

In an effort to counteract adverse consumer reaction to genetically engineered foods, the biotechnology industry has shifted attention to deriving and promoting foods that have been genetically modified to have benefits for the consumer. However, is it uncertain whether this strategic shift will be successful at changing consumer perception of biotechnology. To provide an initial investigation into the issue, we surveyed 270 Mississippi State students. Results suggest that these consumers were more accepting of corn chips that had been modified to increase shelf life as opposed to increasing farmer yields; however, willingness-to-pay premiums for these value-added corn chips were extremely small relative to corn chips that contained no genetically engineered corn. Results also suggest students were more accepting of genetically engineered foods when sold by agribusinesses with high levels of brand equity or store loyalty.

In the growing body of literature concerning consumer acceptance of genetically modified (GM) foods, there are significant differences in conclusions about the impact of knowledge on such acceptance. One potential explanation for these differences is the manner in which knowledge is measured. This paper first provides a review of the literature on objective and subjective knowledge, and reviews previous studies investigating the relationship between knowledge and acceptance of GM foods. Next, the goal of this study is to differentiate and examine the impact of both subjective and objective knowledge related to acceptance of genetically modified foods. Data from surveys collected in the United States, England, and France is used. Our findings suggest that knowledge should not be viewed as a unidimensional construct, and the way in which knowledge is measured significantly impacts the relationship with consumers’ willingness to accept GM foods.