Loureiro, Maria L.

April, 2005

Reputation and Production Standards

By: McCluskey, Jill J.; Loureiro, Maria L.
This paper analyzes a monopolist's behavior when consumers cannot observe the production standards. These types of products are usually known as credence goods. The steady-state level of quality with credence goods is found to be lower than that with experience goods, and perfect information goods. The finding that only perceived quality, which is effectively a filtered version of true quality, affects reputation indicates rewards for high quality production are lower in the credence good case. Further, an increase in the level of monitoring can increase the true level of product quality in the market for credence goods.
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December, 2004

Using Random Parameters to Account for Heterogeneous Preferences in Contingent Valuation of Public Open Space

By: Nahuelhual, Laura; Loureiro, Maria L.; Loomis, John B.
To test for preference heterogeneity in dichotomous choice contingent valuation responses, a random parameter logit (RPL) specification is used in this analysis. The RPL model confirms heterogeneity in respondents' preferences for protection of public open space, as reflected in statistically significant standard deviations of the normally distributed random parameters. Results show that while the majority of respondents indicate a positive willingness to pay (WTP), a minority of those surveyed report a negative WTP. Some of this variation in tastes remains even after individual characteristics and attitudinal variables are included in the model.
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December, 2003

An Empirical Analysis of Market Integration and Efficiency for U.S. Fresh Tomato Markets

By: Padilla-Bernal, Luz E.; McFadden, Dawn Thilmany; Loureiro, Maria L.
Fresh tomato trade between the United States and Mexico grew significantly during the 1990s. Moreover, major structural changes in U.S. produce marketing channels increase the complexity of conducting analyses to delineate the impact of liberalized trade. Following the work of Barrett, Li, and Bailey, this study implements a mixed distribution to examine spatial-price relationships between major shipping points and terminal markets for Mexican imported, and Florida and California tomatoes. Although markets are often efficiently integrated, results suggest strategic pricing and product shipments may exist and vary among terminal markets in Los Angeles, Boston, and Chicago.
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August, 2003

Estimating Consumer Willingness to Pay for Country-of-Origin Labeling

By: Loureiro, Maria L.; Umberger, Wendy J.
Consumer willingness to pay for a mandatory country-of-origin labeling program is assessed. A consumer survey was conducted during 2002 in several grocery stores in Boulder, Denver, and Fort Collins, Colorado. Econometric results indicate that surveyed consumers are willing to pay an average of $184 per household annually for a mandatory country-of-origin labeling program. Respondents were also willing to pay an average of $1.53 and $0.70 per pound more for steak and hamburger labeled as "U.S. Certified Steak" and "U.S. Certified Hamburger," which is equivalent to an increase of 38% and 58%, respectively, over the initial given price.
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December, 2001

ASSESSING CONSUMER PREFERENCES FOR ORGANIC, ECO-LABELED, AND REGULAR APPLES

By: Loureiro, Maria L.; McCluskey, Jill J.; Mittelhammer, Ronald C.
We assess consumer choice of eco-labeled, organic, and regular apples, and identify sociodemographic characteristics affecting the choice among those three alternatives. Eco-labeled apples are less desirable than organic when food safety, the environment, and children's needs are considered. Characteristics that may be expected to positively affect the decision to buy eco-labeled apples relative to regular apples actually have the opposite effect with the inclusion of the organic alternative. When considering all three choices, the eco-labeled product is found to be an intermediate choice among consumers.
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