Files
Abstract
The purpose of this study is to augment the classical demand model with consumer’s
variety-seeking behavior using 2004-2014 weekly Nielsen scanner data for nut products.
We introduce an index variable of taste for variety into the Quadratic Almost Ideal Demand
System model with pre-committed quantities. Results show that consumers do respond
to the price of nut products since the pre-committed quantities only account for
10% of total consumptions. Consumers purchase more tree nut products while seeking
variety, including pecan, walnut, and pistachio, and demand interrelationships among nut
products change after allowing consumers to compensate through income.