Do Pharmacists Buy Bayer? Informed Shoppers and the Brand Premium*

摘要: We estimate the effect of information and expertise on consumers’ willingness to pay for national brands in physically homogeneous product categories. In a detailed case study headache remedies we find that more informed or expert consumers are less likely extra buy brands, with pharmacists choosing them over store only 9 percent time, compared 26 time average consumer. similar pantry staples such as salt sugar, show chefs devote 12 percentage points their purchases than demographically nonchefs. extend our analysis cover 50 retail health categories 241 food drink The results suggest misinformation related consumer mistakes explain sizable share brand premium products, much smaller most products. tie estimates together using stylized model demand pricing.