Matthew C. Rousu
Jayson L. Lusk
Oklahoma State University
Many markets for novel food products are characterized by a lack of information. To counter a lack of information, governmental and non-governmental entities often want to provide consumers with information but do not know exactly what information would be most valuable. In this article, we examine the value of information about genetically modified food (as related to the environment, health, and the impact on the Third World) to determine which source of information provides the most value to consumers. We find that more consumers change consumption behavior when provided with environmental information, but information on benefits to the developing world provides consumers the greatest increase in surplus.
Key words: GM foods, experimental auctions, WTA, value of information.