Experimental Evidence of Risk Aversion in Consumer Markets: The Case of Beef Tenderness



Table 1. Descriptive Statistics for the Auction Sample

Variable

Definition

____________Meana

St.dev.

Gender

Gender of participant
Male = 1; Female = 2

1.51

0.50

Age

Age of participant

38.29

8.50

Income

Total income of householdb
(in NOK 100,000)

5.31

1.89

Education

Highest completed education

Elementary school = 1

High school = 2

University/college = 3_____________________

2.43

0.70

a Corresponding figures for the population between 20 and 60 years old in the Oslo area are 1.51,
39.80, 5.89, and 2.41, respectively, based on estimates from Statistics Norway.

b Income was categorized into six classes. The midpoints of each class were used in the estimations.

Table 2. Descriptive Statistics for the Bids________________________________________

Hypothetical Trials                      Real Trials

H1

H2

R1

R2

R3

R4

Quality A

Mean bid A

83.10

84.88

86.84

88.92

89.53

90.88

Standard deviation A

14.37

15.06

13.71

12.10

13.42

12.33

Price premium Aa

39%

38%

34%

33%

33%

28%

Quality B

Mean bid B

69.16

72.53

73.88

76.92

74.08

75.57

Standard deviation B

12.67

14.01

14.24

12.25

15.06

15.03

Price premium B

16%

17%

13%

14%

9%

6%

Quality C

Mean bid C

54.22

56.22

57.41

57.37

60.04

61.14

Standard deviation C

13.38

14.10

14.08

16.21

16.20

12.34

Price premium C

-10%

-10%

-12%

14%

-12%

-14%

Quality V

Mean bid V

61.16

63.49

66.00

68.59

69.47

72.20

Standard deviation C

13.98

12.98

12.81

13.54

14.31

14.47

a Price premium for quality A relative to quality V, measured in percent. Price premium A = 100*(Bid
A - Bid V)∕Bid V.

10



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