Heterogeneous Consumer Reactions to Health News

Martin Browning, Lars Hansen and Sinne Smed

American Journal of Agricultural Economics, 2019, vol. 101, issue 2, 579-599

Abstract: We investigate heterogeneity in how consumers react to health-related media information. Our specific focus is on news relating to fish and the consumption of different types of fish. We specify a dynamic empirical model that allows for pervasive 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. We find that only 16% of consumers react to news that is specific to fatty fish. These consumers have a large reaction to such news, with a modest initial over-reaction. Furthermore, these consumers are also more attentive to general media information about the healthiness of fish.

Keywords: Consumer behaviour; health news; pervasive heterogeneity (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:101:y:2019:i:2:p:579-599.

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