Consumer Willingness to Pay for "Second-Generation" Genetically Engineered Products and the Role of Marketing Information

Environmental and consumer groups have called for mandatory labeling of genetically engineered (GE) food products in the United States, stating that consumers have the “right to know.†Herein, we use a nonhypothetical field experiment to examine the willingness to pay for GE-labeled products, using the only second-generation GE product currently on the U.S. market-GE cigarettes. Our results suggest consumers pay less for GE-labeled cigarettes when marketing information is absent. But, when presented with marketing information on the attributes of the cigarette, we find no evidence that consumers pay less for GE-labeled cigarettes.