Consumer Choices and Welfare Gains from New, Healthy Products: A Virtual Prices Approach

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2005-01-01
Authors
Ishdorj, Ariun
Jensen, Helen
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Jensen, Helen
Professor Emeritus
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Huffman, Sonya
Adjunct Associate Professor Emeritus
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Economics
Abstract

This paper models consumer food choices with respect to different margarine and spread brands that include a new healthy brand. The results show that the older and smaller size households with higher income and higher education are more likely to purchase the healthy brand. An Almost Ideal Demand System for six brands was estimated and the coefficients were used to calculate price and brand expenditure elasticities in order to examine the responsiveness of the consumers to economic variables.

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This is a presentation from the American Agricultural Economics Association Annual Meeting, Providence, Rhode Island, July 24-27, 2005.

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Sat Jan 01 00:00:00 UTC 2005