The impact of risk information of the demand for Gulf of Mexico and Chesapeake oysters

摘要

The public, through information tied to warning labels and media attention, has been increasingly made aware of the possible health risks associated with the consumption of raw oysters harvested from the Gulf of Mexico. The purpose of this paper is to determine whether this information has reduced demand for the Gulf of Mexico product, the subject of the information, and a closely related product; oysters harvested from the Chesapeake. Results suggest that the information (i.e., warning labels and related media attention) has resulted in a reduction in demand for these products. As a result of the decline in demand, the Gulf of Mexico price was estimated to be about 45 percent lower than it would have been in the absence of the information. The Chesapeake price was estimated to be almost 15 percent below what it would otherwise have been.