Heterogeneous Consumer Reactions to Health News. (3rd August 2018)

• Record Type: Journal Article
• Authors: Browning, Martin; Hansen, Lars Gårn; Smed, Sinne
• Is Part Of: American journal of agricultural economics. Volume 101:Number 2(2019)
• Page Start: 579
• Page End: 599
• Publication Date: 2018-08-03
• Subjects: Consumer behaviour -- health news -- pervasive heterogeneity; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Periodicals; 338.105
• DOI: 10.1093/ajae/aay055
• Languages: English
• ISSNs: 0002-9092

Abstract

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.