Abstract
In this paper we investigate preferences for fat in milk through a structural characteristics model. The data includes information about daily purchases and social and demographic characteristics of more than 1,100 households. We find that consumers who prefer milk with a high fat content do not react to information about health effects, but can be influenced by prices, while consumers who prefer milk with a low share of fat are influenced by information, but are less price sensitive. Therefore, when attempting to decrease consumption of fat from milk, prices are more efficient than information.
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Andersen, L.M., Smed, S. What is it consumers really want, and how can their preferences be influenced? The case of fat in milk. Empir Econ 45, 323–347 (2013). https://doi.org/10.1007/s00181-012-0619-8
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DOI: https://doi.org/10.1007/s00181-012-0619-8