Consumers' activism: the cottage cheese boycott

Igal E. Hendel · Saul Lach · Yossi Spiegel C

64 citations0/0 files storedThe RAND Journal of Economics

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Consumer Market Behavior and Pricing Merger and Competition Analysis Economics of Agriculture and Food Markets

Abstract

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.

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References

2012Social Media and the Decision to Participate in Political Protest: Observations From Tahrir Square 1999Measuring Duopoly Power in the British Electricity Spot Market 1999The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott 2015Social Media and Protest Participation: Evidence From Russia 2012The Social Media Basis of Youth Protest Behavior: The Case of Chile 2007Strategic Activism and Nonmarket Strategy 1985Consumer Boycotts in the United States, 1970–1980: Contemporary Events in Historical Perspective 2014E-lections: Voting Behavior and the Internet

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