Heterogeneous Consumer Reactions to Health News. (3rd August 2018) - Browning, Martin
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.