Limits...
A stated preference investigation into the Chinese demand for farmed vs. wild bear bile.

Dutton AJ, Hepburn C, Macdonald DW - PLoS ONE (2011)

Bottom Line: The ability of farmed bear bile to reduce demand for wild bear bile is at best limited and, at prevailing prices, may be close to zero or have the opposite effect.This means that the incumbent product may actually sell more items at a higher price when competing than when alone in the market.For the wildlife farming debate this indicates that at some prices the introduction of farmed competition might increase the demand for the wild product.

View Article: PubMed Central - PubMed

Affiliation: Wildlife Conservation Research Unit, Department of Zoology, The Recanati-Kaplan Centre, University of Oxford, Oxford, United Kingdom. adam.dutton@zoo.ox.ac.uk

ABSTRACT
Farming of animals and plants has recently been considered not merely as a more efficient and plentiful supply of their products but also as a means of protecting wild populations from that trade. Amongst these nascent farming products might be listed bear bile. Bear bile has been exploited by traditional Chinese medicinalists for millennia. Since the 1980s consumers have had the options of: illegal wild gall bladders, bile extracted from caged live bears or the acid synthesised chemically. Despite these alternatives bears continue to be harvested from the wild. In this paper we use stated preference techniques using a random sample of the Chinese population to estimate demand functions for wild bear bile with and without competition from farmed bear bile. We find a willingness to pay considerably more for wild bear bile than farmed. Wild bear bile has low own price elasticity and cross price elasticity with farmed bear bile. The ability of farmed bear bile to reduce demand for wild bear bile is at best limited and, at prevailing prices, may be close to zero or have the opposite effect. The demand functions estimated suggest that the own price elasticity of wild bear bile is lower when competing with farmed bear bile than when it is the only option available. This means that the incumbent product may actually sell more items at a higher price when competing than when alone in the market. This finding may be of broader interest to behavioural economists as we argue that one explanation may be that as product choice increases price has less impact on decision making. For the wildlife farming debate this indicates that at some prices the introduction of farmed competition might increase the demand for the wild product.

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Related in: MedlinePlus

A set of estimated demand functions for wild bear bile.For each function farmed bear bile is held at ¥30 per treatment and these are the results under the “non-serious” scenario. The CV demand function presents demand in the absence of farmed bear bile whilst the other describes demand when competing with farmed bear bile.
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pone-0021243-g003: A set of estimated demand functions for wild bear bile.For each function farmed bear bile is held at ¥30 per treatment and these are the results under the “non-serious” scenario. The CV demand function presents demand in the absence of farmed bear bile whilst the other describes demand when competing with farmed bear bile.

Mentions: Setting the farmed price at ¥30 the demand for wild bear bile, when farmed bile is available, is equal to demand for wild bear bile when farmed bear bile is not offered at ¥569 (cross price elasticity 0.004). Setting the farmed price at ¥90 the demand for wild bear bile when farmed bile is offered is equal to demand for wild bear bile when farmed bear bile is not offered at ¥381.5 (cross price elasticity 0.0002). These functions can be seen in figures 3 and 4.


A stated preference investigation into the Chinese demand for farmed vs. wild bear bile.

Dutton AJ, Hepburn C, Macdonald DW - PLoS ONE (2011)

A set of estimated demand functions for wild bear bile.For each function farmed bear bile is held at ¥30 per treatment and these are the results under the “non-serious” scenario. The CV demand function presents demand in the absence of farmed bear bile whilst the other describes demand when competing with farmed bear bile.
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC3140486&req=5

pone-0021243-g003: A set of estimated demand functions for wild bear bile.For each function farmed bear bile is held at ¥30 per treatment and these are the results under the “non-serious” scenario. The CV demand function presents demand in the absence of farmed bear bile whilst the other describes demand when competing with farmed bear bile.
Mentions: Setting the farmed price at ¥30 the demand for wild bear bile, when farmed bile is available, is equal to demand for wild bear bile when farmed bear bile is not offered at ¥569 (cross price elasticity 0.004). Setting the farmed price at ¥90 the demand for wild bear bile when farmed bile is offered is equal to demand for wild bear bile when farmed bear bile is not offered at ¥381.5 (cross price elasticity 0.0002). These functions can be seen in figures 3 and 4.

Bottom Line: The ability of farmed bear bile to reduce demand for wild bear bile is at best limited and, at prevailing prices, may be close to zero or have the opposite effect.This means that the incumbent product may actually sell more items at a higher price when competing than when alone in the market.For the wildlife farming debate this indicates that at some prices the introduction of farmed competition might increase the demand for the wild product.

View Article: PubMed Central - PubMed

Affiliation: Wildlife Conservation Research Unit, Department of Zoology, The Recanati-Kaplan Centre, University of Oxford, Oxford, United Kingdom. adam.dutton@zoo.ox.ac.uk

ABSTRACT
Farming of animals and plants has recently been considered not merely as a more efficient and plentiful supply of their products but also as a means of protecting wild populations from that trade. Amongst these nascent farming products might be listed bear bile. Bear bile has been exploited by traditional Chinese medicinalists for millennia. Since the 1980s consumers have had the options of: illegal wild gall bladders, bile extracted from caged live bears or the acid synthesised chemically. Despite these alternatives bears continue to be harvested from the wild. In this paper we use stated preference techniques using a random sample of the Chinese population to estimate demand functions for wild bear bile with and without competition from farmed bear bile. We find a willingness to pay considerably more for wild bear bile than farmed. Wild bear bile has low own price elasticity and cross price elasticity with farmed bear bile. The ability of farmed bear bile to reduce demand for wild bear bile is at best limited and, at prevailing prices, may be close to zero or have the opposite effect. The demand functions estimated suggest that the own price elasticity of wild bear bile is lower when competing with farmed bear bile than when it is the only option available. This means that the incumbent product may actually sell more items at a higher price when competing than when alone in the market. This finding may be of broader interest to behavioural economists as we argue that one explanation may be that as product choice increases price has less impact on decision making. For the wildlife farming debate this indicates that at some prices the introduction of farmed competition might increase the demand for the wild product.

Show MeSH
Related in: MedlinePlus