Impact of Food Contamination on Brands: A Demand Systems Estimation of Peanut Butter

Rafael Bakhtavoryan, Oral Capps and Victoria Salin ()

Agricultural and Resource Economics Review, 2012, vol. 41, issue 3, 13

Abstract: A 2007 food-borne 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; Health Economics and Policy; Marketing (search for similar items in EconPapers)
Date: 2012
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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)
Working Paper: 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:arerjl:141695

DOI: 10.22004/ag.econ.141695

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