Rational inattention or rational overreaction? Consumer reactions to health news

Arbeitspapier

We investigate differences in how consumers of fish react to media information about long term health effects of eating fish. 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 household panel tracking consumption, prices, news stories and media habits over 24 quarters. Prior studies find/suggest that the consumers most likely to be rationally ignorant of long term health effects are inattentive to health news. In contrast we find that these consumers react more dramatically to health news than the consumers who most likely are well informed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFRO Working Paper ; No. 2013/14

Classification and Topics

• Classification: Wirtschaft
• Subject: health information ; consumer behaviour ; pervasive heterogeneity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Browning, Martin ; Hansen, Lars Gårn ; Smed, Sinne
• Event: Veröffentlichung
• (who): University of Copenhagen, Department of Food and Resource Economics (IFRO)
• (where): Copenhagen
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/204361
• Last update: 10.03.2025, 11:44 AM CET