IMPACT OF FOOD CONTAMINATION ON BRANDS: A DEMAND SYSTEMS ESTIMATION OF PEANUT BUTTER

Rafael Bakhtavoryan, Oral Capps and Victoria Salin ()

No 123755, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: A 2007 foodborne illness incident involving peanut butter is linked with structural change in consumer demand. Compensated and uncompensated own- and cross-price elasticities and expenditure elasticities were calculated for leading brands before and after the product recall using the Barten synthetic model and weekly time-series data from 2006 through 2008. Statistically significant differences in price elasticities for the affected brand, Peter Pan, were absent. After a period of 27 weeks, this brand essentially recovered from the food safety crisis. Significant differences in price elasticities were evident among non-affected brands. Hence, spillover effects and heightened competition are associated with the recall.

Keywords: Agribusiness; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 33
Date: 2012
New Economics Papers: this item is included in nep-agr, nep-com and nep-mkt
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter (2012)
Journal Article: Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter (2012)
Working Paper: Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:123755

DOI: 10.22004/ag.econ.123755

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