Much research shows that the ratings that critics, judges, and consumers assign to wines are heteroscedastic. A rating observed is one draw from a latent distribution that is wine- and judge-specific. Estimating the shape of a rating’s distribution by minimizing a sum of cross entropies has been proposed and tested. This article proposes a method of improving the accuracy of that estimate by using information about the context of a wine competition or cross-section ratings data. Tests using the distributions implied by 90 blind triplicate ratings show that the sum of squared errors for the solution using context or cross-section information is 50% more accurate than not using such information and over 99% more accurate than ignoring the uncertainty about a rating.

Pests and diseases like citrus greening that threaten agricultural productivity also pose a risk to consumers. Reductions in food supply due to outbreaks and spread could increase food prices. We model U.S. household fruit demand using a Quadratic Almost Ideal Demand System and data from Circana’s 2020 and 2021 household panel. Price and income elasticity estimates reveal how household behavior might adjust with shocks to citrus and other fruit prices. Shocks to retail fruit prices can be from either citrus greening or other phenomena such as adverse weather. We also use compensating variation to estimate the impact that changes in fruit prices could have on consumer welfare.

Understanding consumer choices and their drivers of willingness to pay (WTP) for a bottle of wine has been a research challenge in wine economics, particularly in niche markets such as sparkling wine. This study investigates the determinants of WTP for sparkling wine based on data from Portuguese consumers. The results provided by two alternative methodologies are compared: a traditional econometric model, based on the estimation of an ordered probit model; and a modelling approach based on data-driven and using machine learning algorithms. Both approaches present similar results, highlighting the relevance of some determinants including income, Champagne brand, not being a protected designation of origin and being a red wine consumer as main predictors of WTP for sparkling wine in Portugal.

Policymakers frequently voice concerns that carbon pricing could impair economic development in the short run, especially in low-income countries such as Uganda. Using a consumer demand system for energy and food items, we assess how households’ welfare, and demand for food and energy, would respond to a carbon price of USD40/tCO2. We find welfare losses of 0.2–12 per cent of household expenditure on food and fuel, due to the carbon price. Average demand for electricity and kerosene decline by 11 and 20 per cent respectively, while firewood demand rises by 10 per cent on average. We observe shifts within food consumption baskets, with declines in the demand for meat & fish, and vegetables, alongside an increase in cereal consumption. Household nutrition is adversely impacted, with declines in protein and micronutrient intake across the population. Complementary social protection policies such as cash transfers are therefore required to ease adverse effects on economic development in Uganda.

This paper surveys what we have learned on financial literacy and its relation to financial behavior from data collected in the Dutch Central Bank (DNB) Household Survey, a project done in collaboration with academics. A pioneering survey fielded in 2005 included an extensive set of financial literacy questions and questions that can serve as instruments for financial literacy in regression analyses to assess the causal effect of financial literacy on behavior. We describe how this survey spurred a series of research papers demonstrating the crucial role of financial literacy in stock market participation, retirement planning, and wealth accumulation. This inspired various follow-up studies and experiments based on new data collections in the DNB Household Survey. Researchers worldwide have used these data for innovative studies, and other surveys have included similar questions. This case study exemplifies the essential role of data in empirical research, showing how innovative data collections can inspire new research initiatives and significantly contribute to our understanding of household financial decision-making.

Corporate political engagement is increasingly noticeable at grocery stores; however, there is limited research evaluating the impact on consumer demand. Here, we investigate the case of Aunt Jemima (AJ), which responded to criticism that the branding was racist by removing the eponymous image and renaming the brand Pearl Milling Company. We evaluate the changes on demand for both the brand and their competitors and find that renaming the brand reduced both willingness to pay for and choice of AJ and increased choice of competitors. Finally, we show these effects are mitigated significantly by informing consumers of the reason for rebranding.

This study investigates whether wording a promotional marketing message as originating from the US government vs. the US president impacts consumers’ responsiveness to the message. Using a discrete choice experiment, it examines consumer responsiveness to President Biden’s order promoting domestic production. Results indicate that consumers are willing to pay a premium for domestically produced tomatoes, with variations based on political affiliations and product attributes like organic labeling and farm employment practices. However, findings on the significance of information treatment effects are mixed, suggesting that consumer responsiveness is unaffected by wording the message as originating from a broad political body vs. a specific politician.

Goat meat consumption has grown in recent years due to dietary and cultural changes. US demand has surpassed domestic supply, presenting an opportunity for industry expansion. This study provides valuable insights into consumer preferences for goat meat. A sample of 1,015 Floridians was randomly assigned to a control and three treatment groups that included information about the health and/or environmental benefits of goat meat. Results show a significant difference in willingness to pay for goat meat under different information treatments. Persuasive marketing campaigns can increase consumers’ preferences for goat meat by raising awareness of the health and environmental benefits.

We are the first to study how the resources freed up when a child, child-in-law, or grandchild moves out of a household are reallocated, taking into account the age of the leaver. Using the 2011 and 2013 waves of the China Health and Retirement Longitudinal Study, we document that, on average, the remaining household members save part of the resources freed up by the leaver and consume another part. Differentiating the leavers by age, we find that after the departure of a member of the younger generation aged 0–24, the remaining household members save the resources freed up by the leaver. However, if the leaver is above 24, they spend the freed-up resources. Our results are robust to the use of different specifications, estimation methods, and consumption aggregates. Finally, we observe that remittances directed toward non-resident offspring do not increase after the departure of a member of the younger generation.

Using the Heckman framework, we develop profiles of households who purchase Greek yogurt and non-Greek yogurt and estimate own-price, cross-price, and income elasticities of demand. Attention is centered on the impacts of age, race, education, and ethnicity of the household head, household income, household size, region, the presence of children, and prices of Greek yogurt and non-Greek yogurt. This analysis rests on data acquired from Nielsen pertaining to 164,484 households over calendar years 2018–2020. Own-price elasticities are estimated to be −1.36 for Greek yogurt and −0.70 for non-Greek yogurt. Additionally, these yogurt products are not only substitutes but also necessities.

Consumers often struggle to make their choice in the highly diversified wine market. With wine being an experience good, consumers must rely on extrinsic characteristics, e.g., information on the label. Thus, easily available quality signals like consumer ratings have become an increasingly useful and widespread tool. Vivino is one of the largest online wine communities with over 60 million users, which have more than doubled since 2018. Hence, users have easy access to peer ratings, while established wine expert ratings are being challenged. This study analyzes data from Vivino to explore factors affecting consumer ratings at different price points, considering several wine attributes like geographical indications, brand, and the so-called “community effect.” We show that there is a small but significant community effect on wine's perceived quality related to its popularity among users of the Vivino community, as well as effects from specific wine attributes. Moreover, we estimate a hedonic quantile model on similar price ranges to compare the effect of the same regressors on wine prices. Results contribute to a better understanding of how different factors affect consumers’ wine evaluations, allowing to compare their effect on the “pure” consumer preference (i.e., consumer ratings) and market value.

The wine industry, considered to be male-dominated, has seen a growing share of women winemakers. Using a randomized online experiment, we investigate how the producer’s gender influences consumers’ willingness to pay for the wine. Gender can be identified either from the first name of the producer or from a gendered group of wine producers. Using a Tobit and a double-hurdle model, our results suggest that consumers’ willingness to pay is lower for wine produced by female winemaker groups. This reduction appears to be particularly pronounced when the consumer is male.

Exploiting the fact that hypertension is diagnosed when a person’s blood pressure reading exceeds a medically specified threshold (90 mmHg for diastolic blood pressure or 140 mmHg for systolic blood pressure), this study estimates the effect of a first-ever hypertension diagnosis on Chinese adults’ alcohol consumption using a two-dimensional regression discontinuity design. Analyzing data on 10,787 adults from the China Health and Nutrition Survey, our estimation reveals that hypertension diagnoses based on diastolic blood pressure readings exert a number of desirable effects. Hypertensive adults’ drinking frequency and the incidence of excessive drinking among them were reduced by 1.2 times/week and 17.9 percentage points, respectively, about three years after the diagnosis. Meanwhile, their beer and Chinese spirits (Baijiu) intakes were reduced by 518.6 ml/week and 194.8 ml/week, respectively. Interestingly, we also found modest evidence that hypertension diagnoses based on diastolic blood pressure readings increase Chinese adults’ wine intake, suggesting a substitution pattern upon hypertension diagnoses. In contrast, based on systolic blood pressure readings, no significant effects of hypertension diagnoses on alcohol consumption were found.

Farmers markets can generate positive externalities by improving food access and negative externalities through pollution. The presence of both may influence people’s willingness to pay (WTP) for living nearby. This study employs spatial hedonic pricing models to estimate the WTP for living near farmers markets in Edmonton, Canada. We find an inverted U-shaped relationship between proximity to a farmers market and property values. Our results suggest that local governments might consider the economic impact of building new or relocating existing farmers markets on residential housing values, alongside the benefits of improved access to high-quality food sources.

This study presents an eye-tracking experiment to investigate consumer responses toward local Texas honey. Honey adulteration news was used as a treatment along with product attributes, such as a certified Texas honey seal, price, organic, and product reviews. The eye-tracking technology was applied to examine the effect of attribute-non-attendance to measure the treatment effects more robustly. The results show that honey adulteration information increases consumers’ willingness to pay (WTP) for some quality-related attributes. The results also show that negative product reviews have a much larger reduction in the magnitude of WTP than the increase produced by positive product reviews.

We conduct sensory analysis and assess consumer preferences and willingness to pay (WTP) for beef steaks from cattle fed hydroponically produced barley fodder (B-F) relative to those fed conventional mixed rations (CON). Results suggest consumers do not differentiate between B-F and CON when evaluating sensory attributes and possess similar WTP for both treatments. Preference toward the B-F treatment is demonstrated for sustainability-conscientious consumers informed about the potential sustainability benefits of the B-F treatment. Producers feeding hydroponically produced barley fodder should not expect premiums above beef-fed conventional feedstuff, yet establishing credence value around the sustainability of the B-F treatment may increase marketability.

Hidden consumption is a potential problem when consumers’ expenditure data from household surveys are used in demand analyses. A solution is to collect and use actual consumption data. This study compares demand estimation using consumption and expenditure data and evaluates meat demand in Nigeria. Data are from a nationally representative panel from Nigeria. The results show the elasticities estimated across both datasets were very similar; thus, if the only objective of data collection is to estimate elasticity using a demand system framework, collection of both types of data (consumption and expenditures) may be unnecessary. The elasticity estimates classify poultry, beef, and processed seafood as luxuries, while other meat and unprocessed seafood are classified as necessities. Own-price elasticities from both datasets indicated that poultry, beef, and processed seafood were price-elastic, and poultry was the most price-elastic.

Cosmetic standards implemented by grocery stores are a substantial barrier to farmers who want to market visually imperfect (VI) produce. However, in recent years, efforts to market VI produce grocery stores have increased. In this study, we estimate the willingness to pay (WTP) for VI organic kale in the Southeastern U.S. using a payment card approach. The results indicate that WTP does not increase when additional information is provided, decreases when areas of imperfections are highlighted, and it is impacted by several consumer characteristics. A profitability case study for a large organic kale producer is also presented.

The COVID-19 pandemic itself constitutes an environment for people to experience the potential loss of control and freedom due to social distancing measures and other government orders. Variety-seeking has been treated as a mechanism to regain a sense of self-control. Using Machine Learning model and household-level data with a focus on the wine market in the United States, this study showcases the changing variety-seeking behavior over the pandemic year of 2020, in which people’s perception of the status of restriction measures influences the degree of their use of variety-seeking behavior as a coping strategy. It is the shopping pattern and store environments that drive the behavioral responses in wine purchases to freedom-limited circumstances. Coupon use is associated with a lower variety-seeking tendency at the beginning of the stay-at-home order, but the variety level resumes when more time has passed in the restriction periods. Variety-seeking tendency increases with shopping frequency at the beginning of the social distancing measure but decreases to a level lower than all the non-restriction periods.

Expert and peer reviews and popularity are freely available both on the Internet and in printed materials for a variety of food products. Using two experimental studies with non-hypothetical tastings and auctions, we explore the impact of peer tasting popularity, actual peer ratings, and expert ratings on demand for wines consumers can or have tasted. We find that higher own wine ratings are associated with higher willingness to pay (WTP). Morevoer, higher peer and expert rating scores increase consumer WTP for wine even after controlling for the impact of consumers’ own ratings. Observed peer popularity also increases WTP for preferred wines.