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The Demand For Fruit Juices: Market Participation And Quantity Demanded

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  • Brown, Mark G.

Abstract

The quantity demanded in a market can be decomposed into two components: the number of purchasers and the quantity per purchaser. Focusing on these two components, the demands for different types of single-flavor fruit juice commodities are analyzed. The approach allows the market demand elasticities to be estimated as the sum of elasticity estimates for the numbers of purchasers and the elasticity estimates for the quantities per purchaser. The method of seemingly unrelated regressions is employed to estimate the equations for the two demand components for the different types of juice.

Suggested Citation

  • Brown, Mark G., 1986. "The Demand For Fruit Juices: Market Participation And Quantity Demanded," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-5, December.
    • Handle: RePEc:ags:wjagec:32247
    DOI: 10.22004/ag.econ.32247
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    References listed on IDEAS

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    1. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    2. Ward, Ronald W. & Tilley, Daniel S., 1980. "Time Varying Parameters with Random Components: The Orange Juice Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 12(2), pages 5-13, December.
    3. Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
    4. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    5. Durbin, J, 1970. "Testing for Serial Correlation in Least-Squares Regression When Some of the Regressors are Lagged Dependent Variables," Econometrica, Econometric Society, vol. 38(3), pages 410-421, May.
    6. C. S. Thraen & J. W. Hammond & B. M. Buxton, 1978. "Estimating Components of Demand Elasticities from Cross-Sectional Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(4), pages 674-677.
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    Cited by:

    1. Brown, Mark G. & Lee, Jonq-Ying & Behr, Robert M., 1990. "Product Labeling, Advertising and Demand for Grapefruit Juice and Grapefruit-Juice Cocktail," 1990 Annual meeting, August 5-8, Vancouver, Canada 270898, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Brown, Mark G., 1988. "Orange Juice Market Participation: A Multinomial Logit Analysis of Frequency Data on Purchases of Alternative Product Forms," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270444, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Shi, Lijia & Gao, Zhifeng & Chen, Xuqi, 2014. "The cross-price effect on willingness-to-pay estimates in open-ended contingent valuation," Food Policy, Elsevier, vol. 46(C), pages 13-21.
    4. Kim, Hyeyoung & Ward, Ronald W. & Lee, Jonq-Ying, 2008. "Impact of Features and Display Ads on the Demand for Orange Juice: An Extension of the Rotterdam Demand Model," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6070, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Demand and Price Analysis;

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