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The Taste for Variety: Demand Analysis for Nut Products in the United States

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  • Cheng, Guo
  • Dharmasena, Senarath
  • Capps, Oral Jr

Abstract

The purpose of this study is to augment the classical demand model with consumer’s variety-seeking behavior using 2004-2014 weekly Nielsen scanner data for nut products. We introduce an index variable of taste for variety into the Quadratic Almost Ideal Demand System model with pre-committed quantities. Results show that consumers do respond to the price of nut products since the pre-committed quantities only account for 10% of total consumptions. Consumers purchase more tree nut products while seeking variety, including pecan, walnut, and pistachio, and demand interrelationships among nut products change after allowing consumers to compensate through income.

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  • Cheng, Guo & Dharmasena, Senarath & Capps, Oral Jr, 2017. "The Taste for Variety: Demand Analysis for Nut Products in the United States," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252719, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252719
    DOI: 10.22004/ag.econ.252719
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    Cited by:

    1. Grigoryan, Sona & Lopez, Jose, 2018. "An Empirical Analysis of the U.S. Import Demand for Nuts," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266538, Southern Agricultural Economics Association.
    2. Itai Trilnick & David Zilberman, 2021. "Microclimate Engineering for Climate Change Adaptation in Agriculture: The Case of California Pistachios," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1342-1358, August.

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    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis;
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