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The Taste for Variety: A Hedonic Analysis

Author

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  • Drescher, Larissa S.
  • Thiele, Silke
  • Weiss, Christoph R.

Abstract

Based on the model of consumers' variety-seeking behavior introduced by Anderson et al. (1992), this paper derives a hedonic price function for a households' consumption bundle. The price a consumer pays for her consumption bundle reflects the values of the underlying attributes of goods purchased but also accounts for any preference for variety that she might have. The empirical analysis is conducted for 3,240 German households and their expenditure on 182 different soft drinks over a six-month period. We find that consumers have a preference for variety in food consumption, ceteris paribus. Furthermore, the per-unit price is found to be significantly larger for higher income households, as well as households where the principal wage earner has a high level of education. Larger households tend to spend less on soft drinks per unit.

Suggested Citation

  • Drescher, Larissa S. & Thiele, Silke & Weiss, Christoph R., 2006. "The Taste for Variety: A Hedonic Analysis," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25251, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25251
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    References listed on IDEAS

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    13. Wanki Moon & Wojciech Florkowski & Larry Beuchat & Anna Resurreccion & Pavlina Paraskova & Jordan Jordanov & Manjeet Chinnan, 2002. "Demand for food variety in an emerging market economy," Applied Economics, Taylor & Francis Journals, vol. 34(5), pages 573-581.
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    Cited by:

    1. Pavlov, Oscar & Weder, Mark, 2012. "Variety matters," Journal of Economic Dynamics and Control, Elsevier, vol. 36(4), pages 629-641.
    2. Åstebro, Thomas & Thompson, Peter, 2011. "Entrepreneurs, Jacks of all trades or Hobos?," Research Policy, Elsevier, vol. 40(5), pages 637-649, June.
    3. 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.
    4. Smed, Sinne & Hansen, Lars Garn, 2010. "Consumer valuation of health attributes in food," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116390, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    5. Andreas Chai & Nicholas Rohde & Jacques Silber, 2015. "Measuring The Diversity Of Household Spending Patterns," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 423-440, July.
    6. Leschewski, Andrea & Weatherspoon, Dave D. & Kuhns, Annemarie, 2016. "A Segmented Hedonic Analysis of the Nutritional Composition of Fruit Beverages," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(3).
    7. Liu, Jing & Shively, Gerald & Binkley, James K., 2013. "Dietary Diversity in Urban and Rural China: An Endogenous Variety Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149624, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    consumer demand; taste for variety; food products; hedonic analysis; Germany; Food Consumption/Nutrition/Food Safety; C21; D12;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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