Economic valuation scenarios for native corn tortillas using Contingent Valuation and Discrete Choice Experiments

Abstract

Statement preference methods are very important and can provide estimates of the economic value of goods and services for which no other method can be used. They are also very useful for understanding the market for a new product. However, these methods are often criticized due to their reliance on hypothetical behavioral data. The objective of this research is to analyze the willingness to pay (WTP) of respondents for tortillas with the following attributes: handmade, made with native corn, organic, and traditionally nixtamalized, using a model obtained through the contingent valuation method (CVM) and others through discrete choice experiments (DCE), varying the levels of socioeconomic variables and attributes. The hypothesis is that consumers with higher income and education levels show a higher WTP. Using binomial, multinomial, and mixed logit models, and creating different scenarios for municipalities in the Mexico City metropolitan area, it was possible to determine the change in the probability of answering "yes" to the willingness-to-pay question with changes in respondent income, education level, number of dependents, and a decrease in the price of tortillas. It was also identified that the most valued attribute was the blue color of the tortilla, followed by the attributes of being native corn, organic, and having added toppings. The largest compensatory variation for organic, native corn, blue tortillas with added toppings was $51.59 MXN/kg, and the smallest was $32.29 MXN/kg. The municipality of Coacalco de Berriozábal placed the highest value on tortillas with the analyzed attributes, followed by Texcoco, Tlalnepantla, and Cuautitlán Izcalli.