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Consumers' activism: the cottage cheese boycott

Consumers' activism: the cottage cheese boycott We study a consumer boycott on cottage cheese, organized in Israel on Facebook in the summer of 2011 following a steep price increase since 2006. The boycott led to an immediate decline in prices, which remain low even six years later. We find that (i) demand at the start of the boycott would have been 30% higher but for the boycott, (ii) own‐ and especially cross‐price elasticities increased substantially after the boycott, and (iii) post‐boycott prices are substantially below the levels implied by the post‐boycott demand elasticities, suggesting that firms were concerned with public backlash due to high prices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Rand Journal of Economics Wiley

Consumers' activism: the cottage cheese boycott

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References (44)

Publisher
Wiley
Copyright
© 2017 The RAND Corporation
ISSN
0741-6261
eISSN
1756-2171
DOI
10.1111/1756-2171.12212
Publisher site
See Article on Publisher Site

Abstract

We study a consumer boycott on cottage cheese, organized in Israel on Facebook in the summer of 2011 following a steep price increase since 2006. The boycott led to an immediate decline in prices, which remain low even six years later. We find that (i) demand at the start of the boycott would have been 30% higher but for the boycott, (ii) own‐ and especially cross‐price elasticities increased substantially after the boycott, and (iii) post‐boycott prices are substantially below the levels implied by the post‐boycott demand elasticities, suggesting that firms were concerned with public backlash due to high prices.

Journal

The Rand Journal of EconomicsWiley

Published: Jan 1, 2017

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