Exploring the effects of misinformation and refutations on product valuation

Abstract

Abstract Misinformation can have a significant impact on consumers’ willingness to pay (WTP) for foods. This study conducted in Italy aims to investigate the effects of misinformation and two types of refutation (tentative and enhanced) on consumers’ WTP using a non-hypothetical experimental auction for ‘blood orange’ [known as Arancia Rossa di Sicilia PGI (Protected Geographical Indication)]. Our findings represent an interesting novelty compared to the past studies since we used for the first time a non-hypothetical approach to reveal difference in WTP values. We found that misinformation significantly affects WTP, but only enhanced refutation was found to be effective in countering this effect.