Foodborne Disease Outbreaks and Consumer Purchases
Toledo, Chantal and Sofia Berto Villas-Boas
from ARE Update Vol. 17, No. 1, Sep/Oct, 2013
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Using a large product-level scanner data set from a national grocery chain, we examine how consumers in California reacted to three consecutive egg recalls during the 2010 Salmonella outbreak. We find a 9% significant reduction in egg sales. Given an overall price elasticity for eggs in U.S. households of around -0.1, this sales reduction is comparable to an almost 100% increase in price.
food safety, Salmonella, consumer behavior, scanner data
Toledo, Chantal and Sofia Berto Villas-Boas. 2013. "Foodborne Disease Outbreaks and Consumer Purchases." ARE Update 17(1): 1-4. University of California Giannini Foundation of Agricultural Economics.