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The Taste for Variety: Demand Analysis for Nut Products in the United States

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  • Cheng, Guo
  • Dharmasena, Senarath
  • Capps, Oral, Jr.

Abstract

The purpose of this study is to augment the classical demand model with consumer’s variety-seeking behavior using 2004-2014 weekly Nielsen scanner data for nut products. We introduce an index variable of taste for variety into the Quadratic Almost Ideal Demand System model with pre-committed quantities. Results show that consumers do respond to the price of nut products since the pre-committed quantities only account for 10% of total consumptions. Consumers purchase more tree nut products while seeking variety, including pecan, walnut, and pistachio, and demand interrelationships among nut products change after allowing consumers to compensate through income.

Suggested Citation

  • Cheng, Guo & Dharmasena, Senarath & Capps, Oral, Jr., 2017. "The Taste for Variety: Demand Analysis for Nut Products in the United States," Reports 285248, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    • Handle: RePEc:ags:tamagr:285248
    DOI: 10.22004/ag.econ.285248
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    Cited by:

    1. Grigoryan, Sona & Lopez, Jose, 2018. "An Empirical Analysis of the U.S. Import Demand for Nuts," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266538, Southern Agricultural Economics Association.
    2. Itai Trilnick & David Zilberman, 2021. "Microclimate Engineering for Climate Change Adaptation in Agriculture: The Case of California Pistachios," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1342-1358, August.

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