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The Rotterdam Demand Model and its Application in Marketing

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Author Info

  • Kenneth W. Clements

    (University of Western Australia)

  • E. Antony Selvanathan

    (University of Jaffna and University of Western Australia)

Abstract

This paper shows how the system-wide approach to demand analysis can be utilized in marketing. In the context of the Rotterdam model, we describe how the approach can be applied to narrowly defined groups of goods (such as beer, wine and spirits) to estimate income and price elasticities of demand. The paper also provides extensions to deal with advertising and introduces a new way of identifying market structure.

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File URL: http://dx.doi.org/10.1287/mksc.7.1.60
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Bibliographic Info

Article provided by INFORMS in its journal Marketing Science.

Volume (Year): 7 (1988)
Issue (Month): 1 ()
Pages: 60-75

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Handle: RePEc:inm:ormksc:v:7:y:1988:i:1:p:60-75

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Related research

Keywords: consumer demand; advertising; market structure;

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Cited by:
  1. Kenneth W. Clements & Saroja Selvanathan, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 209-231, 08.
  2. E. A. Selvanathan & S. Selvanathan, 2004. "Economic and demographic factors in Australian alcohol demand," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2405-2417.
  3. Duffy, Martyn, 2003. "On the estimation of an advertising-augmented, cointegrating demand system," Economic Modelling, Elsevier, vol. 20(1), pages 181-206, January.
  4. Duffy, Martyn, 1995. "Advertising in demand systems for alcoholic drinks and tobacco: A comparative study," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 557-577, December.

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