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Food Product Proliferation: A Market Structure Analysis

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  • John M. Connor

Abstract

The frequent introduction of avowedly novel products is a common marketing strategy of leading food manufacturers. Over half of all new packaged consumer goods are foods or beverages, yet little is known about the amounts, patterns, and causes of product proliferation. Alternative definitions and analytical models of product proliferation are reviewed, focusing on those derived from Hotelling spatial-equilibrium theory. A simple regression model is used to test the relationship of market structure to the number of new food products introduced. The results verify that food product proliferation is a mode of industry conduct arising from markets characterized by differentiated oligopoly.

Suggested Citation

  • John M. Connor, 1981. "Food Product Proliferation: A Market Structure Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 607-617.
    • Handle: RePEc:oup:ajagec:v:63:y:1981:i:4:p:607-617.
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    File URL: http://hdl.handle.net/10.2307/1241203
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