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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.