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THE PRIVATE RATIONALITY OF BOTTLED WATER DRINKING
Author(s) -
Viscusi W. Kip,
Huber Joel,
Bell Jason
Publication year - 2015
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12088
Subject(s) - bottled water , rationality , safer , tap water , taste , business , consumption (sociology) , risk perception , economics , perception , environmental health , marketing , psychology , environmental science , environmental engineering , statistics , medicine , social science , mathematics , neuroscience , sociology , political science , law
This article examines evidence for the private rationality of decisions to choose bottled water using a large, nationally representative sample. Consumers are more likely to believe that bottled water is safer or tastes better if they have had adverse experiences with tap water or live in states with more prevalent violations of EPA water quality standards. Perceptions of superior safety, taste, and convenience of bottled water boost consumption of bottled water. Blacks and Hispanics are more likely to drink bottled water due to their relatively greater exposure to unsafe water and greater risk beliefs. The coherent network of experiences, beliefs, and actions is consistent with rational consumer choice. (JEL D12, D80, Q50)