Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach
Abstract Using a regime-switching dynamic Almost Ideal Demand System, this study investigates the change in consumer behavior during the tuna scare in Spain. The scare was caused by a histamine outbreak in 2017 that resulted from inadequate temperature in storage and color modification. To measure c...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-07-01
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| Series: | Agricultural and Food Economics |
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| Online Access: | https://doi.org/10.1186/s40100-025-00391-5 |
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| author | Yan Jin José María Gil |
| author_facet | Yan Jin José María Gil |
| author_sort | Yan Jin |
| collection | DOAJ |
| description | Abstract Using a regime-switching dynamic Almost Ideal Demand System, this study investigates the change in consumer behavior during the tuna scare in Spain. The scare was caused by a histamine outbreak in 2017 that resulted from inadequate temperature in storage and color modification. To measure consumer awareness of the scare, we developed a communication index based on the number of relevant Twitter (now rebranded as X) posts regarding the safety of tuna consumption and used its magnitude to identify the high and low communication regimes. Using Marshallian price elasticity and expenditure elasticity as indicators, we analyzed the change in consumer behavior during the scare. In the high communication regime, consumers became significantly less sensitive to tuna prices but significantly more sensitive to the prices of salmon and hake. With a hypothetical increase in fish expenditure, a representative consumer would reallocate their budget by decreasing their share of tuna, hake, and other fishes while increasing their share of salmon. The change in consumer behavior started as soon as the communication on Twitter commenced, and it lasted for 10 days. This paper concludes with implications for risk communication and management during a mild food scare. |
| format | Article |
| id | doaj-art-22d705448309433ba6720dc71dca611c |
| institution | Kabale University |
| issn | 2193-7532 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Agricultural and Food Economics |
| spelling | doaj-art-22d705448309433ba6720dc71dca611c2025-08-20T03:45:39ZengSpringerOpenAgricultural and Food Economics2193-75322025-07-0113111710.1186/s40100-025-00391-5Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approachYan Jin0José María Gil1Center for Agro-Food Economics and Development (CREDA-UPC-IRTA), Campus del Baix Llobregat-UPCCenter for Agro-Food Economics and Development (CREDA-UPC-IRTA), Campus del Baix Llobregat-UPCAbstract Using a regime-switching dynamic Almost Ideal Demand System, this study investigates the change in consumer behavior during the tuna scare in Spain. The scare was caused by a histamine outbreak in 2017 that resulted from inadequate temperature in storage and color modification. To measure consumer awareness of the scare, we developed a communication index based on the number of relevant Twitter (now rebranded as X) posts regarding the safety of tuna consumption and used its magnitude to identify the high and low communication regimes. Using Marshallian price elasticity and expenditure elasticity as indicators, we analyzed the change in consumer behavior during the scare. In the high communication regime, consumers became significantly less sensitive to tuna prices but significantly more sensitive to the prices of salmon and hake. With a hypothetical increase in fish expenditure, a representative consumer would reallocate their budget by decreasing their share of tuna, hake, and other fishes while increasing their share of salmon. The change in consumer behavior started as soon as the communication on Twitter commenced, and it lasted for 10 days. This paper concludes with implications for risk communication and management during a mild food scare.https://doi.org/10.1186/s40100-025-00391-5Regime-switching modelDynamic Almost Ideal Demand SystemConsumer reactionsTuna scareTwitterSpain |
| spellingShingle | Yan Jin José María Gil Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach Agricultural and Food Economics Regime-switching model Dynamic Almost Ideal Demand System Consumer reactions Tuna scare Spain |
| title | Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach |
| title_full | Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach |
| title_fullStr | Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach |
| title_full_unstemmed | Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach |
| title_short | Are consumers more sensitive to price changes during food scares? A regime-switching dynamic almost ideal demand system approach |
| title_sort | are consumers more sensitive to price changes during food scares a regime switching dynamic almost ideal demand system approach |
| topic | Regime-switching model Dynamic Almost Ideal Demand System Consumer reactions Tuna scare Spain |
| url | https://doi.org/10.1186/s40100-025-00391-5 |
| work_keys_str_mv | AT yanjin areconsumersmoresensitivetopricechangesduringfoodscaresaregimeswitchingdynamicalmostidealdemandsystemapproach AT josemariagil areconsumersmoresensitivetopricechangesduringfoodscaresaregimeswitchingdynamicalmostidealdemandsystemapproach |