UC Davis Agricultural and Resource Economics

ARE at AAEA: Jarrett Hart: Drink Beer for Science: An Experiment on Consumer Preferences for Local Craft Beer

July 31, 2018

Time: 1 p.m. Tuesday, Aug. 7
Location: Park Tower Suite 8222, Craft Beverages Differentiated


Using an experimental approach, I measure consumers’ willingness to pay (WTP) for locally produced and independently owned beer. During the month of January 2018, customers at a local beer bar were asked to participate in an experiment in which they compare their original selection with ten other random offerings from the bar; they received mixed information about the brewery’s location and ownership for these selections. To conclude the experiment, participants were tested for their knowledge of acquisitions. The result is a dataset consisting of WTP and consumer demographics that is independent of supply side effects. Hedonic analysis clearly indicates that consumers exhibit preferences for locally owned and independently produced beer.

*This is information about one of the 17 people from ARE with a presentation at the 2018 AAEA Annual Meeting Aug. 5–7 in Washington, D.C.


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