That’s the title of a new working paper I’ve co-authored with Vincenzina Caputo.
Much of research seeking to understand consumers’ preferences for food products and attributes relies on “choice experiments”, which are like simulated shopping scenarios. What makes choice experiments different from a true shopping scenario, however, is that respondents are only asked to choose one product out of a set. In reality, people often choose multiple products from different product categories when shopping, and their preference for one product may depend on what they’ve already put in the shopping basket.
Here’s a brief summary from the paper:
The following figure shows the most common items consumers put in their basket.
Perhaps more interesting, however, are the combinations of items people place in their baskets. For example, given that someone chooses ground beef, the next most common items in the basket are salad/lettuce, potatoes, and then tomatoes. Given that someone has picked ground beef, there is more than a 50% chance each of these vegetables/vegetables also appears in the basket. These sorts of results illustrate the challenge of suggesting people to just increase fruit or vegetable consumption because their values for these items increase when accompanied with meat. For example, one of our model specifications suggests that the value of lettuce/salad increases by more than $4 if it is also accompanied with ground beef.
There’s much more in the paper, which Vincenzina will present at the Agricultural and Applied Economics Association meetings next month.