RT info:eu-repo/semantics/workingPaper
T1 Demand for differentiated milk products : implications for price competition
A1 López Díaz-Delgado, Elena
A1 López, Rigoberto A.
K1 Demand analysis
K1 Random coefficients model
K1 Milk
K1 Consumer behavior
K1 Retail pricing
K1 Markups
K1 Competition
K1 D12
K1 D40
K1 L11
K1 L81
K1 Ciencias económicas
K1 Estadística
K1 Economics
K1 Statistics
AB We apply the Berry, Levinsohn and Pakes (1995) model to scanner data from Bostonsupermarkets augmented with consumer characteristics data in order to analyze consumerchoices and price competition in a differentiated fluid milk market. Milk characteristics includeprice, fat content, brand name and the organic and/or lactose-free nature of the product.Empirical results show that consumer valuation of fat decreases with income but increases withthe number of children. Low-fat and specialty milks, such as organic and lactose-free milks, arepreferred by high-income consumers with no children. Although all milks are price elastic at theindividual brand level, the cross-price elasticities are quite low and negligible for specialty milks.Based on calculated Lerner indexes, private label milks have the highest percent markupsdespite their lower prices, while specialty milks have the lowest markups despite their higherprices, which attests to a greater degree of market power for conventional and particularly forprivate label milk.
PB Universidad de Alcalá. Departamento de Estadística, Estructura Económica y Organización Económica Internacional
YR 2008
FD 2008-11
LK http://hdl.handle.net/10017/2261
UL http://hdl.handle.net/10017/2261
LA eng
DS MINDS@UW
RD 20-abr-2024