The Demand for Food Products: An Analysis of Interpurchase Times and Purchased Quantities
AbstractIn this paper we study household purchase behaviour of storable food products. An inventory model is developed in which the household chooses an optimal stock level of the product. Storage of the product is costly, there is a fixed cost per purchase occasion, and the market price is sometimes discounted because of price promotions. We show that the optimal purchase policy is an s, S policy. The model is used to derive predictions on the correlations between interpurchase times and purchased quantities on the one hand, and prices on the other. These predictions are empirically verified using consumer panel data.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 111 (2001)
Issue (Month): 470 (April)
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Other versions of this item:
- C, Boizot & Jean-Marc Robin & Michael Visser, 1997. "The Demand for Food Products : An Analysis of Interpurchase Times and Purchased Quantities," Working Papers 97-48, Centre de Recherche en Economie et Statistique.
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- Hendel, Igal & Nevo, Aviv, 2001.
"Sales and Consumer Inventory,"
Competition Policy Center, Working Paper Series
qt0p18h2d8, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- Iga Hendel and Aviv Nevo., 2001. "Sales and Consumer Inventory," Economics Working Papers E01-307, University of California at Berkeley.
- Iga Hendel & Aviv Nevo, 2002. "Sales and Consumer Inventory," Microeconomics 0201001, EconWPA.
- Hendel, Igal & Nevo, Aviv, 2001. "Sales and Consumer Inventory," Department of Economics, Working Paper Series qt11x3d68b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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Open Access publications from University College London
http://discovery.ucl.ac.u, University College London.
- Rachel Griffith & Ephraim Leibtag & Andrew Leicester & Aviv Nevo, 2009. "Consumer Shopping Behavior: How Much Do Consumers Save?," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 99-120, Spring.
- Igal Hendel & Aviv Nevo, 2006.
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Econometric Society, vol. 74(6), pages 1637-1673, November.
- Igal Hendel & Aviv Nevo, 2005. "Measuring the Implications of Sales and Consumer Inventory Behavior," NBER Working Papers 11307, National Bureau of Economic Research, Inc.
- Dong, Diansheng & Stewart, Hayden, 2008. "Household Food Purchase Patterns: The Case of Vegetables," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Van den Berg, Gerard J., 2000.
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- Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier.
- Rachel Griffith & Ephraim Leibtag & Andrew Leicester & Aviv Nevo, 2008. "Timing and Quantity of Consumer Purchases and the Consumer Price Index," NBER Working Papers 14433, National Bureau of Economic Research, Inc.
- Victor Aguirregabiria & Victor Aguirregabiria & Aviv Nevo & Aviv Nevo, 2010.
"Recent Developments in Empirical IO: Dynamic Demand and Dynamic Games,"
tecipa-419, University of Toronto, Department of Economics.
- Aguirregabiria, Victor & Nevo, Aviv, 2010. "Recent developments in empirical IO: dynamic demand and dynamic games," MPRA Paper 27814, University Library of Munich, Germany.
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