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

H1 H2 R1 R2 R3 R4

Trial
→-A -_q-b →-C -o-V -Jie-E(V)

Figure 2. Willingness to Pay for the Different Qualities

Cumulative distribution

^a The risk ratio is defined as the WTP for generic beef divided by the weighted average of the WTP for
the three qualities of tenderness-categorized beef, with the shares used in the categorization as
weights.

Figure 3. Cumulative Distribution of the Risk Ratio^a

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