The Taste for Variety: Demand Analysis for Nut Products in the United States
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
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.