Consumer Demand for Low-Acrylamide-Forming Potato Products: Evidence from Lab Auctions

A probable human carcinogen-acrylamide-was discovered about a decade ago to form naturally in potato products cooked at high temperatures. Using incentive compatible lab auctions and adult consumers from three distant U.S. locations, we test food labeling and information effects on willingness-to-pay (WTP) for conventional and genetically engineered potatoes, fries, and chips to reduce acrylamide levels. These new potato products are the first biotech products to have enhanced food safety for a popular food in the American and European diets. Relative to an environmental group's perspective, scientific and industry information significantly increase WTP for biotech relative to conventional potato products. In addition, we find significant location-specific fixed effects of information treatments. Scientific and industry information can be used to nudge consumers towards improved decision making and healthy diets.