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Jawboning cereal: The campaign to lower cereal prices

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  • Ronald W. Cotterill

    (Food Marketing Policy Center, Agricultural and Resource Economics, 1376 Storrs Road, U-21, Storrs, CT 06269-4021)

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    Abstract

    This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid-1990s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust efforts to promote competition. The RTE cereal industry is now undergoing major structural changes that are on balance pro-competitive. [EconLit cites: L100, L410, L660] © 1999 John Wiley & Sons, Inc.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 15 (1999)
    Issue (Month): 2 ()
    Pages: 197-205

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    Handle: RePEc:wly:agribz:v:15:y:1999:i:2:p:197-205

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Ronald W. Cotterill & Andrew W. Franklin & Lawrence E. Haller, 1994. "Harvesting and Tacit Collusion in the Breakfast Cereal Industry: A Case Study of Nabisco Shredded Wheat and Post Grape Nuts," Issue Papers 06, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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    Cited by:
    1. James Binkley & James Eales & Mark Jekanowski & Ryan Dooley, 2001. "Competitive behavior of national brands: The case of orange juice," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 139-160.
    2. Chidmi, Benaissa & Lopez, Rigoberto A. & Cotterill, Ronald W., 2005. "A Supermarket-Level Analysis of Demand for Breakfast Cereals: A Random Coefficients Approach," 2005 Annual meeting, July 24-27, Providence, RI 19236, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ronald W. Cotterill, 2001. "Neoclassical explanations of vertical organization and performance of food Industries," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 33-57.

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