TEACHING CONSUMER ECONOMICS USING TASTE PANELS

The teaching of economic theory has become a microeconomic theory. The theoretical sections major topic in the economics literature. Siegfried of these courses tend to be abstract and are not and Fels point to the growing number of econo- fully comprehended by many students. Instrucmists who consider their special interest to be tors may encounter additional difficulties in economic education. More recently, educational teaching consumer economic theory because economists have shown that the production func- many agricultural economics undergraduate curtion concept can be used in analyzing educational riculum tend to be production oriented and deprocesses (Morgan and Vasche; Hanushek), and vote less attention to consumer economics; and that the lecture is the most widely used method utility theory is limited to ordinal analysis and for communicating information (Chew-Wah et lacks the advantages of the more precise cardinal al., p. 3). Critics argue that the extensive use of analysis of production economics. The problem lecture and other passive teaching techniques are setting is not one of teaching more courses in subject to diminishing returns (White and White). consumer economics, but one of teaching existAlternative teaching techniques can be intro- ing consumer economic theory more effectively. duced to offset diminishing returns to lectures A weak foundation in consumer economic theand enhance the learning experience. ory tends to dampen the students' analytical Several alternative teaching methods that skills in other areas, particularly in the area of permit active student participation are discussed market classification. Students are generally in the literature (Kelly; French; Boehlje and taught that taste and preferences are given, and Eidman; Nelson and Harris; and Mandercheid that little attention is paid to the relationship beand Ferres). Siegfried and Fels (p. 940) discussed tween consumer theory and imperfect markets, computer assisted games, programmed study, the latter characterized by imperfect informapersonalized systems of instruction, video in- tion, preference manipulation and interdepenstruction, and graduate student instructors. dent utility functions (Quirk, p. 66; Schmid, p. White and White describe some benefits to small 59). group activities in agricultural policy courses, and Broder discussed the use of "hands-on" models for teaching economic theory to unCONSUMER THEORY dergraduates. This article describes how taste panels can be In this section, the basic postulates of conused as a supplementary technique for teaching sumer behavior, more commonly known as consumer economics to undergraduates. More modern utility theory, are presented, along with specifically, the objectives of this article are to a discussion of imperfect markets and their effect (1) discuss problems associated with teaching on consumer behavior. The discussion serves as consumer theory; (2) discuss those aspects of the foundation upon which the taste panel experconsumer economic theory that can be simulated iment was designed and conducted as a supplewith taste panels; and (3) describe the taste panel mental teaching technique. procedure and the results of its application in ac- Quirk (p. 59) suggests that consumer behavior tual classroom settings. The focus of the taste rests on two fundamental postulates: (1) Conpanel is on learning and not on rigorous testing sumers make choices from among alternatives in consumer preference theory. a manner consistent with their own evaulation of their self-interest; (2) Given adequate access to information, consumers are the best judge of PROBLEM SETTING their own self-interest. In pursuing their selfinterest, consumers attempt to maximize utility, The typical undergraduate curriculum for stu- given their income and the bundles of goods and dents in agricultural economics usually includes services available to them. This utility maximizacourses in economic principles and intermediate tion behavior, as described in the context of in