The effect of product quantity on willingness to pay: A meta‐regression analysis of beef valuation studies

Abstract

AbstractStated preference methods in food economics typically focus on willingness to pay for high food quality of a fixed product quantity, ignoring the role of product quantity on welfare estimates. This study demonstrates that product quantity matters in beef valuation studies both theoretically and empirically. We find that when product quantity can be chosen freely by individuals, the price premium for improved quality per beef product decreases with beef product quantity. A meta‐regression analysis conducted on beef valuation studies shows the extent of the impact of product quantity. When beef product quantity increases by 100 g, the percentage price premium declines by 2−4 percentage points, which differs across model specifications and samples. The implications for willingness to pay estimates and the design of stated preference methods are discussed in line with the results. [EconLit Citations: D10, D60, Q18].