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Product differentiation and brand competition in the Italian breakfast cereal market: a distance metric approach

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  • Sckokai, Paolo
  • Varacca, Alessandro

Abstract

This article employs a nation-wide sample of supermarket scanner data to study product and brand competition in the Italian breakfast cereal market. An Almost Ideal Demand System (AIDS) modelled to include Distance Metrics (DMs) and consistent with the methodology proposed by Pinske, Slade and Brett (2002), is estimated to study demand responses, substitution patterns, own-price and cross-price elasticities. Estimation results indicate a certain level of brand loyalty and opposite attitudes towards product type. Elasticities point out the presence of patterns of substitution within products sharing the same brand and similar nutritional characteristics.

Suggested Citation

  • Sckokai, Paolo & Varacca, Alessandro, 2012. "Product differentiation and brand competition in the Italian breakfast cereal market: a distance metric approach," 2012 First Congress, June 4-5, 2012, Trento, Italy 124102, Italian Association of Agricultural and Applied Economics (AIEAA).
    • Handle: RePEc:ags:aieacp:124102
    DOI: 10.22004/ag.econ.124102
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    4. Joris Pinkse & Margaret E. Slade & Craig Brett, 2002. "Spatial Price Competition: A Semiparametric Approach," Econometrica, Econometric Society, vol. 70(3), pages 1111-1153, May.
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    Cited by:

    1. Romano, Donato, 2012. "The Bio-based Economy: a New Development Model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-3, December.

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    More about this item

    Keywords

    Industrial Organization;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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