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Analyzing Consumer Demand During a Food Scandal: The Case of Dioxin Contaminated Feed in Germany and the Media

Listed author(s):
  • Rieger, Jorg
  • Kuhlgatz, Christian

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.

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File URL: http://purl.umn.edu/212292
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Paper provided by International Association of Agricultural Economists in its series 2015 Conference, August 9-14, 2015, Milan, Italy with number 212292.

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Date of creation: 2015
Handle: RePEc:ags:iaae15:212292
Contact details of provider: Web page: http://www.iaae-agecon.org/
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