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The Effect of Consumer Learning Behavior on the Rising Bottled Water Consumption

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  • Huang, Lu
  • Liu, Yizao

Abstract

This paper examines the impact of consumer learning behavior on the rising bottled water consumption. Consumers are assumed with initial prior beliefs about the distribution of health effect of beverages and update their beliefs using health information in a Baysian manner. We find that the health effect perception for bottled water is much higher than for sugar sweetened soft drinks, which can explain the increase in bottled water consumption over time. According to our findings, health information can promote healthy diet and reduce sugar intake through consumers’ learning behavior. This finding helps policy makers develop more effective obesity control programs.

Suggested Citation

  • Huang, Lu & Liu, Yizao, 2013. "The Effect of Consumer Learning Behavior on the Rising Bottled Water Consumption," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150217, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:150217
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    File URL: http://ageconsearch.umn.edu/record/150217/files/AAEA2013_bwater_LuHuang.pdf
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    References listed on IDEAS

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    4. McGuirk, Anya M. & Driscoll, Paul J. & Alwang, Jeffrey Roger & Huang, Huilin, 1995. "System Misspecification Testing And Structural Change In The Demand For Meats," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 1), pages 1-21, July.
    5. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
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    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics;

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