Rational inattention or rational overreaction? Consumer reactions to health news

Publikation: Working paperForskning

We investigate differences in how consumers of fish react to health information in the mass media. We specify a dynamic empirical model that allows for heterogeneity in all basic parameters of consumer behavior as well as in how consumers react to information. We estimate the model using a unique houshold panel tracking consumption, prices, news stories and media habits over 24 quarters. We fi nd that the consumers most likely to be ’rationally ignorant’ of health effects react more dramatically to health news than the consumers who most likely are well informed.
OriginalsprogEngelsk
UdgivelsesstedFrederiksberg
UdgiverDepartment of Food and Resource Economics, University of Copenhagen
Antal sider29
StatusUdgivet - 2013
NavnIFRO Working Paper
Nummer2013/14

ID: 54585817