Information, Preferences, and Adoption Decisions: Three Essays in Applied and Behavioral Economics

Abstract

This dissertation, through three chapters, explores preference heterogeneity among college students, investigates the consistency between stated and observed food choices, and evaluates barriers to agricultural technology adoption among U.S. agribusiness firms. These studies provide insights into the factors that shape decision-making across different contexts within the agricultural food system.

In the first chapter, we survey college students to understand their food consumption preferences and infer their future food decisions. Using the latent class analysis method, we classify survey participants based on food temptation feelings and food taste ratings. Our analyses identify two latent groups of students: Tempted Indulgers and Temptation Restrainers. Tempted Indulgers are health conscious but overweight and succumb to temptation. Temptation restrainers are also health conscious but have normal BMI scores and exercise self-control in food decisions. Latent classes’ correlation with BMI and self-control measures validate our findings. We conclude that the food preferences of young adults are primarily driven by menu-dependent preferences rather than knowledge of food diet quality. Our findings explain why most nudge-based health interventions fail, and we show the importance of addressing menu dependent visceral feelings in designing health policies.

The second chapter studies whether the decision makers exhibit consistent food choices in a dynamic setting. There is limited knowledge about the consistency of food choices in dynamic decision-making contexts. We conducted an incentivized food choice experiment in a field setting. Around 77% of food decisions are dynamically consistent, and most inconsistencies occur in choice switches from high to low-calorie meal options. Our results bear good news for policymakers, as food decisions are moderately consistent, and desired preference shifts can be sustained over time. However, shifting food preferences poses a significant challenge to health policies, as information and behavioral nudges do not influence food preferences and their consistency.

Chapter three investigates how economic, environmental, technical, political, and socio-cultural barriers shape innovation outcomes of openness, effort and success among US agribusiness firms. Drawing from perception-based survey data from agribusiness employees, the analysis employs a sequential modeling strategy combining ordered probit and triple hurdle probit estimation. The results reveal that environmental barriers are the most significant obstacle to innovation across all innovation stages, indicating regulatory and sustainability pressures can stimulate adaptive innovation. Economic barriers exhibit dual effect, reducing openness and effort but positively influencing innovation success once firms commit to adoption. Technical barriers hinder progress in specific contexts, especially for smaller firms and food related enterprises. Findings reveal heterogeneity across subsectors and firm sizes, highlighting that innovation in agribusiness often emerges as a strategic adaptation to constraints.