Food Product Recalls, Agbiotech And Consumer Response: The Case Of Starlink
Using a conditional nonlinear AIDS model and three years of syndicated, national-level weekly point-of-purchase scanner data, we empirically estimate the consumer response to the Starlink recall while controlling for relative prices, per capita real expenditure, holidays, post-recall demand trends and the media. In the salted snacks product category, acute media coverage reduced the expenditure share for the recalled products and those shares nearly recovered 12 months post-recall. Expenditure shares in the chili seasonings product category were unaffected by the recall and media coverage.
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