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Food Product Recalls, Agbiotech And Consumer Response: The Case Of Starlink

Author

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  • Vickner, Steven S.
  • Marks, Leonie A.
  • Kalaitzandonakes, Nicholas G.

Abstract

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.

Suggested Citation

  • Vickner, Steven S. & Marks, Leonie A. & Kalaitzandonakes, Nicholas G., 2003. "Food Product Recalls, Agbiotech And Consumer Response: The Case Of Starlink," 2003 Annual meeting, July 27-30, Montreal, Canada 22050, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22050
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    File URL: http://purl.umn.edu/22050
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    References listed on IDEAS

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    1. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
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    3. Smith, Mark E. & van Ravenswaay, Eileen O. & Thompson, Stanley R., 1987. "Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii," Working Papers 115803, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. David G. Swartz & Ivar E. Strand, Jr., 1981. "Avoidance Costs Associated with Imperfect Information: The Case of Kepone," Land Economics, University of Wisconsin Press, vol. 57(2), pages 139-150.
    5. Adolf Buse, 1994. "Evaluating the Linearized Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 781-793.
    6. Nicholas Kalaitzandonakes & Richard Maltsbarger & James Barnes, 2001. "Global Identity Preservation Costs in Agricultural Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 605-615, December.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Cited by:

    1. Bakhtavoryan, Rafael & Capps, Oral, Jr. & Salin, Victoria, 2012. "Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), December.

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