Does information exposure approximate information choice? An experiment on honey fraud information and valuation

Abstract

We conducted a novel incentivized valuation experiment to study the implications of information exposure on consumer valuation and compare them to an approximation of real-world conditions in which people select information to view in an information-rich environment. Studies on the impact of information on consumer valuation typically direct participants to read researcher-provided information, but evidence from comparable studies of decisions in laboratory versus field settings suggests this approach may overestimate the real-world impact—that is, the external validity—of information when people must choose among many sources of information. We study the implications of information exposure vs. information choice by randomizing participants to one of those two conditions in a controlled valuation experiment based on the Becker-DeGroot-Marschak mechanism, addressing three aims. First, we estimate the difference in valuation of honey when individuals are exposed to information vs. when they can choose to access information. Next, we examine potential drivers of information search when individuals can choose to access information. Finally, we study the effects of exposure to information on subsequent information access. The research offers multiple contributions, including—most significantly—evidence that valuation changes in response to information does not reflect what happens when people can make choices about information access, which is critical for providing accurate estimates to researchers, policymakers, and other stakeholders. It also contributes to our understanding of individuals' selection of information, identifying drivers of information choice. Finally, it provides estimates of the impact of information about honey fraud on consumers' valuation of honey. Honey fraud and its impact on honey revenues is a key issue for the beekeeping industry and an important determinant of the number of hives contributing to crop pollination.