This paper discusses the long-run impact of reputation damage on the market transactions associated with the Fukushima Daiichi nuclear disaster. I estimated the demand function of rice using the discrete-choice model, and the equilibrium was solved using the parameters of the model. As a result, although evasive behavior among consumers was found, estimates under the assumption of no damage differed little from the real prices. This suggests that the secular price decline of rice produced in Fukushima Prefecture was not caused only by psychological factors of consumers but also by other factors such as wholesaler’s private standards.
