Responses of Consumer And Manufacturer to the Salmonella Outbreak in The U.S. Peanut Butter Market

Sungtae Eun

International Journal of Food and Agricultural Economics (IJFAEC), 2023, vol. 11, issue 4

Abstract: This study analyzes the effect of foodborne outbreaks that occurred in 2006 and 2008 in the peanut butter industry across the United States. The objective of this study was to estimate the demand and pricing conduct in the peanut butter industry under the salmonella outbreaks. The study applied a random coefficients multinomial logit demand for differentiated peanut butter brands. With own and cross-price elasticities and cost parameters corresponding to those products' attributes, the study analyzes the effect of a foodborne outbreak on consumers' behavior and manufacturers' pricing performance. Furthermore, this study used the demand estimates to measure the market power of peanut butter brands. Consumers react negatively to price in all cities, but the other taste parameter estimates for calorie, fat, sugar, and protein had a wide distribution, depending on consumers’ demographics. For pricing conduct, the cities indicated higher Lerner indices when the city shifted the pricing conduct

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Health Economics and Policy; Production Economics; Public Economics (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/339055/files/vol11.no4.pp207.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:339055

DOI: 10.22004/ag.econ.339055

Access Statistics for this article

More articles in International Journal of Food and Agricultural Economics (IJFAEC) from Alanya Alaaddin Keykubat University, Department of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().