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Is no news bad news? The impact of disclosing COVID-19 tracing information on consumer dine out decisions.


ABSTRACT: Food markets around the world have been disrupted by the COVID-19 pandemic via consumer behavior upended by fear of infection. In this article, we examine the impact of disclosing COVID-19 contact tracing information on food markets, using the restaurant industry in China as a case study. By analyzing transaction data at 87 restaurants across 10 cities, we estimate difference-in-difference (DID) models to ascertain the impact of COVID-19 infections and contact information tracing on economic activity as measured by a daily number of transactions. Empirical results show that while the overall number of new COVID-19 infections at the national level caused a dramatic drop in numbers of transactions in all restaurants, restaurants in cities that disclosed contact tracing information of COVID-19 infections experienced a 23%-35% higher number of transactions than the ones in cities that did not disclose such information during the recovery period. Ultimately, we show that in the absence of a shelter-in-place mandate, disclosing contract tracing information to mitigate consumers' uncertainties about risks of being infected can contribute to a faster recovery of food markets, in addition to reducing COVID-19 infections.

SUBMITTER: Gao Y 

PROVIDER: S-EPMC9350169 | biostudies-literature | 2022 Sep

REPOSITORIES: biostudies-literature

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Is no news bad news? The impact of disclosing COVID-19 tracing information on consumer dine out decisions.

Gao Yuan Y   Lopez Rigoberto A RA   Liao Ruili R   Liu Xiaoou X  

Agricultural economics (Amsterdam, Netherlands) 20220627 5


Food markets around the world have been disrupted by the COVID-19 pandemic via consumer behavior upended by fear of infection. In this article, we examine the impact of disclosing COVID-19 contact tracing information on food markets, using the restaurant industry in China as a case study. By analyzing transaction data at 87 restaurants across 10 cities, we estimate difference-in-difference (DID) models to ascertain the impact of COVID-19 infections and contact information tracing on economic act  ...[more]

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