Effects and Value of Verifiable Information in aControversial Market: Evidence from Lab Auctions ofGenetically Modified Food

Food products containing genetically modified (GM) ingredients have entered themarket over the past decade. The biotech industry and environmental groups have disseminatingconflicting private information about GM foods. This paper develops a unique methodology forvaluing independent third-party information in such a setting and applies this method toconsumers’ willingness to pay for food products that might be GM. Data are collected from realconsumers in an auction market setting with randomized information and labeling treatments.The average value of third-party information per lab participant is small, but the public goodvalue across U.S. consumers is shown to be quite large.[...]