Anchored preferences: How reference price formats shape consumer willingness to pay for familiar and unfamiliar labels

Abstract Accurate estimates of consumer willingness to pay (WTP) are crucial in applied economic research. Rather than examining reference prices themselves, this study investigates how reference price formats affect willingness to pay (WTP) for labeled foods using national survey data by applying the Contingent Valuation Method and Seemingly Unrelated Regression. Results show that higher average reference prices for conventional foods increase WTP for conventional and Non‐GMO products, with weaker effects on organic and transitional organic labels. In contrast, organic reference prices and price ranges have no effect, suggesting that reference prices act as anchors only in specific contexts.