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Analyzing Consumer Demand During A Food Scandal: The Case of Dioxin Contaminated Feed in Germany And The Media

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  • Rieger, Jorg
  • Kuhlgatz, Christian

Abstract

This study investigates the effect of media coverage on the consumer demand for pork chops and chicken filet in the course of the German dioxin scandal in 2011. A media index is constructed to account for the dynamics of the media coverage for the first nineteen calendar weeks in 2011. The response of the German households is estimated with a dynamic correlated random effect Tobit model based on weekly panel data provided by the GfK and data on media coverage provided by Lexis Nexis. Our dataset contains detailed information on purchasing transactions and socio-economic characteristics of the consumer households. The empirical results show that unobserved heterogeneity is important to consider when analyzing the determinants of demand in times of a scandal. For both meat products, media had a significant negative effect on the propensity to consume as well as the quantity purchased.

Suggested Citation

  • Rieger, Jorg & Kuhlgatz, Christian, 2015. "Analyzing Consumer Demand During A Food Scandal: The Case of Dioxin Contaminated Feed in Germany And The Media," 2015 Conference, August 9-14, 2015, Milan, Italy 212197, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212197
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    Cited by:

    1. Rieger, Jörg & Weible, Daniela, 2016. "Analyse Der Nachfragereaktionen Auf Den Dioxinskandal: Sind Die Medien Oder Letztendlich Konsumgewohnheiten Entscheidend?," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244777, German Association of Agricultural Economists (GEWISOLA).

    More about this item

    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Y90 - Miscellaneous Categories - - Other - - - Other

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