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Heterogeneous Consumer Reactions to Health News
Author(s) -
Browning Martin,
Hansen Lars Gårn,
Smed Sinne
Publication year - 2019
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aay055
Subject(s) - consumption (sociology) , fish <actinopterygii> , advertising , focus (optics) , business , news media , marketing , fishery , biology , sociology , optics , social science , physics
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.