The Nature Of Demand For Companion Pet Health Care

Abstract

More than 49 percent of American households own companion animals and spend nearly five billion dollars annually for veterinary care. This paper examines the demand for cat and dog health care. The estimated price and income elasticities for overall demand are -0.12 and +0.80, respectively. However, cat owners show more sensitivity to both price and income than do dog owners. In addition, these sensitivities vary with the location and the practice composition of veterinarian firms.