Habits in frequency of purchase models: the case of fish in France

Arnar Buason, Dadi Kristofersson, Kyrre Rickertsen

Research output: Contribution to journalArticlepeer-review

Abstract

The quantity purchased in a period is the result of two decisions: the frequency of purchase and the average purchase on each occasion. We introduce habit formation into demand systems modelling each of these decisions. An econometric model is estimated by Bayesian methods. The data generating processes of the frequency and quantity decisions are assumed to follow, respectively, a multivariate Poisson log-normal distribution and a multivariate gamma log-normal distribution. We estimate the systems using French scanner data for purchases of fish. The results suggest that habits in purchase frequencies are important, while habits in average purchased quantities are less important. Furthermore, we find that price changes are important for explaining average quantities purchased but have only minor effects on purchase frequencies.

Original languageEnglish
Pages (from-to)3577-3589
Number of pages13
JournalApplied Economics
Volume53
Issue number31
DOIs
Publication statusPublished - 2021

Bibliographical note

Funding Information:
The authors thank Pierre Combris and INRA, Paris for help with obtaining and preparing the data. The Research Council of Norway (Grant 199564) provided financial support for this research.

Funding Information:
This work was supported by the The Research Council of Norway [199564]. The authors thank Pierre Combris and INRA, Paris for help with obtaining and preparing the data. The Research Council of Norway (Grant 199564) provided financial support for this research.

Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.

Other keywords

  • Demand system
  • fish
  • France
  • frequency of purchase
  • habit formation

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