Lusk, Jayson L.

May, 2023

By: Tang, Minfeng; Thompson, Nathanael M.; Boyer, Christopher N.; Olynk Widmar, Nicole J.; Lusk, Jayson L.; Stewart, Terry S.; Lofgren, Donna L.; Minton, Nick
Previous hedonic assessments have largely relied on the assumption that bull buyers have homogeneous demands for bull attributes. However, quality differentiations and heterogeneous demands support the existence of submarkets. This analysis investigates market segments using a finite mixture model and 13 years of bull auction data. Results indicate that valuations of bull attributes vary across implicit buyer segments. Differences in demand may be influenced by a variety of factors, includingÑbut not limited toÑfarm goals, labor availability, and end-use marketing arrangements for calves. Results have important implications for signaling quality cues throughout the industryÕs breeding sectors.

May, 2022

By: Schmiess, Jacob S. ; Lusk, Jayson L.
Despite many consumers' intuitions to the contrary, improvements in farm animal welfare can conflict with environmental objectives, particularly regarding greater intensification of production systems. Using a discrete choice experiment, this study determines how consumers make trade-offs between increased animal welfare and lower levels of environmental impact. We assess the sensitivity of results by varying how attributes were presented and what information was available to respondents. Overall, results suggest consumers are willing to trade environment for animal welfare, but the extent of this trade-off strongly depends on how the information is conveyed to consumers.

January, 2020

By: Yang, Ruoye; Raper, Kellie Curry; Lusk, Jayson L.
U.S. consumers see retail beef products with “no added hormones” (NAH) labels. However, similar labels appear on pork and chicken products, even though hormone use in their production is prohibited. This study assesses consumer perceptions of hormone use in different livestock species. Using choice experiment data, we then examine the impact of these perceptions on preferences for unlabeled meat products and willingness to pay for NAH-labeled meat products. Results suggest that consumer perceptions of hormone use in production are incorrect. Further, perceptions influence consumer preferences and willingness to pay for unlabeled products versus those with NAH labels.

September, 2019

By: Lusk, Jayson L.; Thompson, Nathanael M.; Weimer, Shawna L.
There has been substantial productivity growth in the broiler industry; however, high growth rates might adversely affect animal welfare, resulting in calls for slow-growth breeds. This research shows production costs are 11%'25% per pound higher for slower-growing breeds than for modern breeds, depending on the target endpoint. Breakeven wholesale price premiums needed equate net returns of slow- to fast-growth broilers range from $0.10/lb to $0.36/lb. Annual costs of an industry-wide conversion to slow growth are $450 million for consumers and $3.1 billion for producers. Consumer willingness-to-pay would need to increase 10.8% to offset the producer losses.

September, 2018

By: Kim, Seon-Woong; Lusk, Jayson L.; Brorsen, B. Wade
We investigate whether consumers purchase organic foods to demonstrate social status to others. Subjects were asked to choose among organic and nonorganic milk and apples in a control group and treatments in which: i) an image of another person’s eyes was displayed, ii) responses appeared to not be anonymous, or iii) a vignette placed the choice in the presence of an acquaintance. The vignette treatment increased the willingness-to-pay (WTP) premium for organic by about 90%. The other treatments did not have significant overall effects. When exposed to another person’s eyes, more educated respondents increased their WTP for organic.

May, 2017

By: Su, Lianfan; Adam, Brian D.; Lusk, Jayson L.; Arthur, Frank
This study uses an experimental auction and a discrete choice experiment to determine consumers’ willingness to pay (WTP) for rice with improved insect control and for rice stored using Integrated Pest Management and investigates potential reasons—anchoring and information—why some studies have found inconsistencies between the two methods. Results indicate that WTP estimates from the choice experiment are lower than consumers’ average auction bids. Anchoring in the choice experiment appears to be an explanation for the discrepancy. Providing consumers with additional information about the products improved choice experiment results, producing consistent preference ordering and increasing WTP estimates.

September, 2016

By: Malone, Trey; Lusk, Jayson L.
California legislation outlawed the use and sale of battery cages for egg-laying hens in 2015. While a number of ex ante studies projected the effects of the housing prohibitions, the ultimate ex post effects are unknown. Using a price series reported by the USDA, we study the movement of daily egg prices in California and the United States before and after the law’s implementation. Depending on the methods used, we find that Californians now pay between $0.48 and $1.08 more for a dozen eggs. The estimates suggest an annual reduction in California consumer surplus of between $400 million and $850 million.

May, 2016

By: Thompson, Nathanael M.; DeVuyst, Eric A.; Brorsen, B. Wade; Lusk, Jayson L.
We estimate the value of using genetic information to make fed cattle marketing decisions. Efficiency gains result from sorting cattle into marketing groups, including more accurate optimal days-on-feed and reduced variability of returns to cattle feeding. The value of using genetic information to selectively market cattle ranged from $1–$13/head depending on how a producer currently markets cattle and the grid structure. Although these values of genetic information were generally higher than those reported in previous research, they were still not enough to offset the current cost of genetic testing (about $40/head).

April, 2014

By: Thompson, Nathanael M.; DeVuyst, Eric A.; Brorsen, B. Wade; Lusk, Jayson L.
We estimate the value of using information from genetic marker panels for seven economically relevant feedlot cattle traits. The values of using genetic information to sort cattle by optimal days-on-feed are less than $1/head for each of the traits evaluated. However, the values associated with using genetic information to select cattle for placement are as much as $38/head. The most economically relevant genetic traits are average daily gain and marbling. It would not be profitable at the current testing cost of $38/head to sort cattle by optimal days-on-feed, but it could be profitable to use the genetic tests for breeding cattle selection.

August, 2013

By: McFadden, Brandon R.; Lusk, Jayson L.
Proposition 37 would have required genetically engineered food in California to be labeled. This paper reports the results of a survey designed to determine Californians’ voting intentions prior to the vote, perceptions about the prevalence of genetically engineered foods in the United States, willingness to pay for a mandatory label, and effectiveness of advocacy advertising. Overall, Californians had inaccurate knowledge about the prevalence of genetically engineered foods, and stated they were willing to pay up to 13.8% higher food costs on average for a mandatory label. Findings suggest that the effectiveness of opposition advertising was likely a formative factor in the defeat of Proposition 37.