LONG-RUN EFFECTS FROM CONSUMER REACTION TO THE SPREAD OF FOODBORNE PATHOGENS: THE CASE OF E. COLI CONTAMINATION OF BEEF AT JACK IN THE BOX RESTAURANTS

Chen Zhen

No 51341, 2009 Conference, August 16-22, 2009, Beijing, China from International Association of Agricultural Economists

Abstract: Using news coverage of food safety as an indicator of public attention to food pathogen issues in meat products, we found the 1993 E. coli O157:H7 contamination of hamburgers likely permanently changed consumers' perception of beef safety. A food consumption model with rational habit persistence is developed to examine whether consumers make forward-looking consumption decisions accounting for expectations of future food safety. We document clear evidence of forward-looking consumption behavior, which suggests that government regulations implemented subsequent to the 1993 event to protect consumers from ignorance or cognitive defects may be ineffective.

Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 32
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae09:51341

DOI: 10.22004/ag.econ.51341

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