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Heterogeneous Consumer Reactions to Health News

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  • Martin Browning
  • Lars Gårn Hansen
  • Sinne Smed

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.

Suggested Citation

  • Martin Browning & Lars Gårn Hansen & Sinne Smed, 2019. "Heterogeneous Consumer Reactions to Health News," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 579-599.
    • Handle: RePEc:oup:ajagec:v:101:y:2019:i:2:p:579-599.
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    File URL: http://hdl.handle.net/10.1093/ajae/aay055
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