Consumers' Valuation of Geographical Indication-Labeled Food: The Case of Hom Mali Rice in Bangkok*

Abstract

This study investigated consumers' valuation of geographical indication (GI) and protected geographical indication (PGI)-labeled rice in Bangkok using a non-hypothetical experimental auction in a field setting. We also examined the effects of sequentially providing information about geographical indications on product valuation. The results suggest that consumers are willing to pay premiums for rice with geographical certifications, with the highest premium for the rice with both GI and PGI certifications. The provision of detailed information about the geographical indications further increases the premiums. However, consumers suffer a welfare loss under the current high market prices for rice with geographical certifications. A price reduction of approximately 10 percent would be needed to gain consumer welfare from the introduction of GI and PGI certification.