Rational inattention or rational overreaction? Consumer reactions to health news
We investigate differences in how consumers of fish react to media information about long term health effects of eating fish. We specify a dynamic empirical model that allows for heterogeneity in all basic parameters of consumer behavior as well as in how consumers react to information. We estimate the model using a unique household panel tracking consumption, prices, news stories and media habits over 24 quarters. Prior studies find/suggest that the consumers most likely to be rationally ignorant of long term health effects are inattentive to health news. In contrast we find that these consumers react more dramatically to health news than the consumers who most likely are well informed.
|Date of creation:||Sep 2013|
|Contact details of provider:|| Web page: http://www.ifro.ku.dk/english/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johan F. M. Swinnen & Jill McCluskey & Nathalie Francken, 2005.
"Food safety, the media, and the information market,"
International Association of Agricultural Economists, vol. 32(s1), pages 175-188, 01.
- Swinnen, Johan F. M. & McCluskey, Jill & Francken, Nathalie, 2003. "Food Safety, the Media, and the Information Market," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa: Plenary Sessions 245932, International Association of Agricultural Economists.
- Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 158-179, March.
- Timothy K.M. Beatty & Jay P. Shimshack & Michael B. Ward, 2005. "Are Mercury Advisories Effective? Information, Education, and Fish Consumption," Discussion Papers Series, Department of Economics, Tufts University 0502, Department of Economics, Tufts University.
- Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," MPRA Paper 25995, University Library of Munich, Germany.
- Nayga, Rodolfo M., Jr., 1996. "Determinants Of Consumers' Use Of Nutritional Information On Food Packages," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(02), December.
- Gouriéroux, Christian & Phillips, Peter C.B. & Yu, Jun, 2010. "Indirect inference for dynamic panel models," Journal of Econometrics, Elsevier, vol. 157(1), pages 68-77, July.
- Christian GouriÃƒÂ©roux & Peter C. B. Phillips & Jun Yu, 2006. "Indirect Inference for Dynamic Panel Models," Development Economics Working Papers 22421, East Asian Bureau of Economic Research.
- Christian Gourieroux & Peter C. B. Phillips & Jun Yu, 2006. "Indirect Inference for Dynamic Panel Models," Cowles Foundation Discussion Papers 1550, Cowles Foundation for Research in Economics, Yale University.
- Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
- Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Jill J. McCluskey & Johan F.M. Swinnen, 2004. "Political Economy of the Media and Consumer Perceptions of Biotechnology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1230-1237.
- Tonsor, Glynn T. & Mintert, James R. & Schroeder, Ted C., 2010. "U.S. Meat Demand: Household Dynamics and Media Information Impacts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), April.
- Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
- Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
- Fox, John A & Hayes, Dermot J & Shogren, Jason F, 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Journal of Risk and Uncertainty, Springer, vol. 24(1), pages 75-95, January.
- Fox, John A. & Hayes, Dermot J. & Shogren, Jason F., 2002. "Consumer Preferences for Food Irradiation: How Favorable and Unfavorable Descriptions Affect Preferences for Irradiated Pork in Experimental Auctions," Staff General Research Papers Archive 5207, Iowa State University, Department of Economics.
- Adhikari, Murali & Paudel, Laxmi & Houston, Jack E. & Paudel, Krishna P. & Bukenya, James O., 2006. "The Impact of Cholesterol Information on Meat Demand: Application of an Updated Cholesterol Index," Journal of Food Distribution Research, Food Distribution Research Society, vol. 37(02), July.
- Mizerski, Richard W, 1982. " An Attribution Explanation of the Disproportionate Influence of Unfavorable Information," Journal of Consumer Research, Oxford University Press, vol. 9(3), pages 301-310, December.
- Lijia Mo, 2013. "Impact of food safety information on US poultry demand," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1121-1131, March.
- Nicholas E. Piggott & Thomas L. Marsh, 2004. "Does Food Safety Information Impact U.S. Meat Demand?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 154-174.
- Theodossiou, Panayiotis & McDonald, James B. & Hansen, Christian B., 2007. "Some Flexible Parametric Models for Partially Adaptive Estimators of Econometric Models," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 1, pages 1-20.
- Theodossiou, Panayiotis & McDonald, James B. & Hansen, Christian B., 2007. "Some Flexible Parametric Models for Partially Adaptive Estimators of Econometric Models," Economics Discussion Papers 2007-13, Kiel Institute for the World Economy (IfW).
- Kyrre Rickertsen & Dadi Kristofersson & Solveig Lothe, 2003. "Effects of health information on Nordic meat and fish demand," Empirical Economics, Springer, vol. 28(2), pages 249-273, 04.
- Roger A. Dahlgran & Dean G. Fairchild, 2002. "The demand impacts of chicken contamination publicity-a case study," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 459-474.
- Brian Coffey & Ted Schroeder & Thomas Marsh, 2011. "Disaggregated household meat demand with censored data," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2343-2363.
- Sinne Smed, 2012. "Information and consumer perception of the “organic” attribute in fresh fruits and vegetables," Agricultural Economics, International Association of Agricultural Economists, vol. 43, pages 33-48, November.
- Wim Verbeke, 2005. "Agriculture and the food industry in the information age," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 347-368, September.
- Wim Verbeke & Ronald W. Ward & Jacques Viaene, 2000. "Probit analysis of fresh meat consumption in Belgium: Exploring BSE and television communication impact," Agribusiness, John Wiley & Sons, Ltd., vol. 16(2), pages 215-234.
- Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
- Takashi Ishida & Noriko Ishikawa & Mototsugu Fukushige, 2010. "Impact of BSE and bird flu on consumers' meat demand in Japan," Applied Economics, Taylor & Francis Journals, vol. 42(1), pages 49-56.
- Takashi Ishida & Noriko Ishikawa & Mototsugu Fukushige, 2006. "Impact of BSE and Bird Flu on Consumers f Meat Demand in Japan," Discussion Papers in Economics and Business 06-01, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Jayachandran N. Variyam & James Blaylock & David Smallwood, 1996. "A Probit Latent Variable Model of Nutrition Information and Dietary Fiber Intake," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 628-639. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:foi:wpaper:2013_14. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Geir Tveit)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.