Relational goods and direct purchase from farmers: estimating the value of the relationship between consumers and producers Report as inadecuate




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Personal relationships can affect economic life and they may be even more important in Alternative Food Networks. We estimate the value of the relational good produced by the personal relationship in direct sales by farmers. This is relevant for assessing the importance of personal interaction in a typically economic behavior like food purchase. Drawing from theoretical considerations, we employ a stated preferences methodology to estimate the value consumers buying directly from farmers attach to their particular choice of vendor. We estimated a difference-in-utility model and a model based on the valuation function, using data from a consumer survey in open-air markets in four towns in Piedmont Region (Italy). Contingent on the chosen model, the average value is 10-12 percent of the consumers’ expenditure for fruits and vegetables, and up to 1.2-1.3 percent of their overall income.

Keywords: relational goods ; stated preferences ; direct sales ; alternative food networks

Subject(s): Agricultural Finance

Consumer/Household Economics

Issue Date: 2015

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/211550

Total Pages: 18

JEL Codes: C5; D1; Q13

Record appears in: International Association of Agricultural Economists (IAAE) > 2015 Conference, August 9-14, 2015, Milan, Italy





Author: Corsi, Alessandro ; Novelli, Silvia

Source: http://ageconsearch.umn.edu/record/211550?ln=en



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