Show simple item record Ferrer Zarzuela, Rosa Perrone, Helena
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 2018-02-14T15:30:04Z 2018-02-14T15:30:04Z 2017-06-01
dc.description.abstract Using an ideal setting from a major food safety crisis, we estimate a full demand model for the unsafe product and its substitutes and recover consumers' preference parameters. Counterfactual exercises quantify the relevance of dierent mechanisms -changes in safety perceptions, idiosyncratic tastes, nutritional characteristics, and prices-driving consumers' response. We find that consumers' reaction is limited by their taste for the product and its nutritional characteristics. Due to the costs associated with switching away from the aected product, the decline in demand following a product-harm crisis tends to understate the true weight of such events in consumers' utility. Indeed, we nd that a large fraction of consumers are unresponsive to the crisis even when they significantly downgrade their product safety perception. For an accurate assessment of the crisis, managerial strategies should therefore account for how dierent demand drivers bind consumers' substitution patterns.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1571
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Consumers’ costly responses to product-harm crises
dc.type info:eu-repo/semantics/workingPaper 2017-07-23T02:18:18Z
dc.subject.keyword food safety
dc.subject.keyword demand estimation
dc.subject.keyword scanner data
dc.subject.keyword idiosyncratic utility parameters
dc.subject.keyword nutritional preferences
dc.subject.keyword Business Economics and Industrial Organization
dc.subject.keyword Labour, Public, Development and Health Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess

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