Li, Xianghong

By: Heng, Yan; Hanawa Peterson, Hikaru; Li, Xianghong
Concerns over laying hens’ welfare have led to many different labels for eggs and changes to state regulations. Consumer attitudes toward farm-animal welfare were examined using a national survey in the context of preferences for eggs differentiated by layer management practices. Most respondents perceived caged housing and other conventional management practices as reducing hens’ welfare and were willing to pay a premium for eggs produced in cage-free and other nonconventional production systems. Although participants responded to information about environmental consequences of management practices, they placed more weight on animal welfare issues than environmental issues in their egg-purchase decisions.
By: Xia, Tian; Li, Xianghong
We propose consumption inertia as a new explanation for asymmetric price transmission. Inertia in consumer demand enlarges retailers’ gains in gross profits from raising prices in response to higher wholesale prices and reduces gains from decreasing prices in response to lower wholesale prices. Thus, consumption inertia can cause asymmetries in price transmission whereby retailers are more willing to change their prices, and change them more quickly, in response to wholesale price increases as opposed to wholesale price decreases.