Brand-Supermarket Demand for Breakfast Cereals and Retail Competition
AbstractThe Berry, Levinsohn, and Pakes (1995) market equilibrium model is extended to the supermarket chain level to examine consumer choices and retail competition for thirty-seven brands of breakfast cereals in Boston. Estimated taste parameters for product characteristics vary significantly across consumers. Although consumers are price-sensitive with respect to their chosen cereals, they exhibit strong brand and supermarket loyalty. Retail markups increase and marginal costs decrease with grocery market shares, attesting to oligopoly power with efficiencies. Markups decrease with the own-price elasticity of demand, with Corn Flakes having the highest markups. A detailed picture of consumer response and supermarket competition is provided. Copyright 2007, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 89 (2007)
Issue (Month): 2 ()
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.
- Thunström, Linda, 2008. "Food Consumption, Paternalism and Economic Policy," UmeÃ¥ Economic Studies 739, Umeå University, Department of Economics.
- repec:zwi:wpaper:11 is not listed on IDEAS
- Elena Lopez & Rigoberto A. Lopez, 2009.
"Demand for differentiated milk products: implications for price competition,"
John Wiley & Sons, Ltd., vol. 25(4), pages 453-465.
- Elena López & Rigoberto A. López, 2008. "Demand for differentiated milk products: Implications for price competition," Alcamentos 0805, Universidad de Alcalá, Departamento de Estadística, Estructura y O.E.I..
- Thunström, Linda, 2008. "Preference Heterogeneity and Habit Persistence: The Case of Breakfast Cereal Consumption," UmeÃ¥ Economic Studies 738, Umeå University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.