Consumers’ cognitive bias and willingness to pay for chilled pork: Evidence from science experiments and auctions in China

The existing large literature on consumers' willingness to pay for agricultural products mostly focuses on consumers' subjective evaluation, ignoring the possibility of cognitive bias regarding quality. In this study, we quantify consumers' cognitive bias regarding chilled pork quality, with a combination of science experiments and lab experimental auction. We found that 1) consumers tend to underestimate the quality of chilled pork and such underestimation is more profound especially for higher quality pork, and 2) consumers’ willingness to pay and purchase probability for chilled pork is positively related to the cognitive bias for pork quality. Our results suggest a potential market inefficiency, which could be improved through quality signals such as certification.