| dc.description.abstract | The dissertation applies three different methods to reveal consumers’ attitude toward Genetically Modified Organisms (GMOs). I incorporate experimental economics methods, surveys and causal inference methods, by using market data thoroughly to analyze consumers’ reaction to GMO related information and explain the reason behind it.
My first essay investigates whether the available information on the health and safety of GMOs can affect consumers’ acceptance of GMO products. Grocery shoppers were provided with information from the 2016 National Academy of Science, Engineering, and Medicine report on GMO products, and asked to participate in second price auctions for different products. We found that health concerns were the key reasons as to why consumers prefer non-GMO products to GMO products. People who believe that GMOs have negative effects on their health pay more for non-GMO products. We conclude that information about the health and safety of GMOs can change consumers’ perception on GMO products, but its effectiveness varied across different news media for different consumers.
In the second essay, I used factor analysis focusing on the latent variables. More specifically, I applied Confirmatory Factor Analysis (CFA) based on Theory of Planned Behavior trying to figure out the effect of interaction of perceived risk, perceived benefits and knowledge level on the acceptance of GMO. The results confirmed the effect of knowledge. Moreover, subjective knowledge level and objective knowledge level will cause different levels of acceptance of GMO.
In my third essay I used the national level data to study how GMO labeling information influences consumers’ purchase decision. Vermont has become the first state that requires mandatory GMO labeling starting July 1st, 2016. The expectation of enforcement of mandatory GMO labeling law forced companies to label their products that include GMO ingredients as GMO, not only in Vermont but also around the U.S. I apply causal inference method to analyze the demand change after Vermont’s GMO labeling law took into effect. By comparing the sales of GMO and Non-GMO cereal products before and after the mandatory labeling, I found the mandatory labeling caused a decrease in the sales of GMO products. | en |
