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Is Soy Milk? The Economics Of The Soy Milk Market

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  • Dhar, Tirtha Pratim
  • Foltz, Jeremy D.
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    Abstract

    This study uses revealed preferences of consumers to study the consumer benefits from soy milk. The study specifies and estimates structural demand and reduced form models of competition for different milk types using US supermarket scanner data. The introduction of soy milk is used to estimate consumer benefits and valuations. We decompose benefits into two components, competitive and variety effects. Results show relatively small consumer benefits from soy milk.

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    File URL: http://purl.umn.edu/20337
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20337.

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    Date of creation: 2004
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    Handle: RePEc:ags:aaea04:20337

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    Related research

    Keywords: Demand Systems; Q-AIDS; Milk markets; Biotechnology; Soy milk; Food Labeling; Demand and Price Analysis; Q130; C300; D120; D400;

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    1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    2. Richard Blundell & Robin, J M, 1995. "Latent separability: grouping goods without weak separability," IFS Working Papers W95/09, Institute for Fiscal Studies.
    3. Kadiyali, Vrinda & Vilcassim, Naufel J & Chintagunta, Pradeep K, 1996. "Empirical Analysis of Competitive Product Line Pricing Decisions: Lead, Follow, or Move Together?," The Journal of Business, University of Chicago Press, vol. 69(4), pages 459-87, October.
    4. Huffman Wallace E. & Rousu Matthew & Shogren Jason F & Tegene Abebayehu, 2004. "Consumer's Resistance to Genetically Modified Foods: The Role of Information in an Uncertain Environment," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(2), pages 1-15, May.
    5. Mario F. Teisl & Nancy E. Bockstael & Alan Levy, 2001. "Measuring the Welfare Effects of Nutrition Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 133-149.
    6. Cotterill, Ronald W & Putsis, William P, Jr & Dhar, Ravi, 2000. "Assessing the Competitive Interaction between Private Labels and National Brands," The Journal of Business, University of Chicago Press, vol. 73(1), pages 109-37, January.
    7. Cotterill, Ronald W. & Franklin, Andrew W. & Ma, Li Yu, 1996. "Measuring Market Power Effects in Differentiated Product Industries: An Application to the Soft Drink Industry," Research Reports 25229, University of Connecticut, Food Marketing Policy Center.
    8. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    9. Tirtha Pratim Dhar & Jean-Paul Chavas & Brian W. Gould, 2002. "An Empirical Assessment of Endogeneity Issues In Demand Analysis for Differentiated Products," Food Marketing Policy Center Research Reports 066, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    10. Richard Blundell & Jean-Marc Robin, 2000. "Latent Separability: Grouping Goods without Weak Separability," Working Papers 249984, Institut National de la Recherche Agronomique, France.
    11. Ronald W. Cotterill & Andrew W. Franklin & Li Yu Ma, 1996. "Measuring Market Power Effects in Differentiated Product Industries: An Application to the Soft Drink Industry," Food Marketing Policy Center Research Reports 032, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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