We use Kriström’s simple spike model to assess the factors influencing consumers’ willingness to pay a premium for a variety of certified wood products. A survey of over 1600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive “premium”...

The use of labels on fresh fruits have significantly influenced and transformed the fresh produce market over the last decade. While it is well-known from the literature that food labels notably shape consumers' choices and consequently their willingness to pay (WTP) incremental premiums for...

We investigate the price premium on certified wood from sustainable forests, using data from more than 38,000 log transactions in Shizuoka Prefecture, Japan. We found a positive and statistically significant effect of certification. The premium added by certification was 1.4% more than the price...

With the increasing concerns about the petroleum reserve, and the global warming, people have been looking for renewable and environmental friendly energy sources to supplement and replace fossil fuels. Ethanol has been an appropriate substitute to fossil fuels. Currently, E10 and E85 are two of...

We explore the questions of whether and why Real Estate Investment Trusts (REITs) pay more for real estate than non-REIT buyers, consequently breaking the law of one price. We develop a model where REITs optimally pay more for property because (1) they are able, due to capital access advantages...

Frequent flier programs (FFPs) are said to affect airline customer behaviour such that revenue of sponsoring airlines increases. To this end prior research relies on assumptions of competition, lock-in effects and variations in scale and scope of FFPs. Whether a FFP by itself induces a price...

This paper addresses the question of how the vertical structure of a product line relates to brand equity. Does the presence of “premium” or high-quality products in a product line enhance brand equity? Conversely, does the presence of “economy” or low-quality products in a product line...

The knowledge of the overall willingness-to-pay and the specific price premiums consumers accept when buying foods with less fat, saturated fat, sodium, sugar and more fiber shapes food manufacturer and distributor marketing strategies and supports the development of public health strategies....

This paper contributes to the economic literature on pure and impure public goods by consid-ering two alternatives for contributing to the public good climate protection: compensating carbon emissions from conventional consumption or paying higher prices for climate-friendly products. We...

Quality assurance and labeling play an important and increasing role in firms’ marketing strategies. In almost all cases, a price incentive has been stressed as the major incentive for firms to participate in such schemes. We argue here that important non-price incentives for participation in...