December - 2018
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Intended Cost Shifting

Project Title

Intended Cost Shifting in Decision Making

Project Number

K-120183

Beneficiary and Research Leader

Tamás Kocsis PhD
Corvinus University of Budapest

Financial Support

6 713 000 HUF

Intensity

100%

Project End-date

2018.09.30.

Introduction

"Why do we pay more for organic food than for ‘ordinary’ food? In theory, providing food should incur the same costs under the same climatic and soil conditions; the difference lies mainly in technology. Organic food bears more of its costs, and ‘ordinary’ food less. All the rest of the latter’s costs occur somewhere else, often far in time or in space, or appear in the less humane treatment of animals. Thus the higher price of organic food can be described by economic law because it has higher cost content. In general, usually we have lots of technological options (see e.g. choices on the egg market). Information is often available about the technologies behind those products, and we, either as consumers or producers, have the option to choose between those technologies. But low-cost technologies, which are usually also regarded as more advanced, powerful and efficient, spread more of their costs elsewhere. Choosing between them reveals a preference towards the others who must bear those costs – especially when the above-described background has been made clear to the decision maker. We deal with those preferences through collecting data from consumers and potential producers – first among university students with an economics major. Who are those individuals whose willingness to spread their costs is definitively lower than others? And who are those who are ready to spread costs to others, even marginally low costs, to gain advantage for themselves? These are the main questions in this research which is also embedded into the related scientific knowledge of external cost analysis, subjective risk perception, and the valuation of natural resources used by economists."

 

 

Research Materials in English

1.)

Marjainé Szerényi Zsuzsanna, Kocsis Tamás: Does the Numéraire matter with willingness to accept cost shifting? In: Money Talks?: Communication as/and Economy : International Interdisciplinary Conference. Konferencia helye, ideje: Budapest, Magyarország, 2017.05.04 Paper 29.

2.)

Kocsis Tamás, Marjainé Szerényi Zsuzsanna, Kerekes Sándor: Efficiency or cost shifting?: Willingness to spread cost measured by decisions between hypothetical technological options. In: ESEE 2017 Conference: 12th Conference of the European Society for Ecological Economics : Corvinus University of Budapest - Budapest, Hungary, 20th - 23rd June, 2017 Konferencia helye, ideje: Budapest, Magyarország, 2017.06.20-2017.06.23. pp. 267-269.

Last modified: 2018.11.30.