IDEAS home Printed from https://ideas.repec.org/p/ags/rpspwp/116168.html
   My bibliography  Save this paper

Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks

Author

Listed:
  • Langan, Glenn E.
  • Cotterill, Ronald W.

Abstract

This paper reports econometric estimation of brand level demand (AIDS) elasticities for regular carbonated soft drinks using Information Resources, Inc. panel data. Own and cross price elasticities are used to measure actual and hypothetical market power that would arise from potential mergers or collusive pricing arrangements.

Suggested Citation

  • Langan, Glenn E. & Cotterill, Ronald W., 1994. "Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks," Working Papers 116168, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  • Handle: RePEc:ags:rpspwp:116168
    DOI: 10.22004/ag.econ.116168
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/116168/files/WP-42.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.116168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Connor, John M. & Peterson, Everett B., 1993. "New Estimates of Welfare and Consumer Losses in U.S. Food Manufacturing," Staff Papers 200402, Purdue University, Department of Agricultural Economics.
    2. Connor, John M & Peterson, Everett B, 1992. "Market-Structure Determinants of National Brand-Private Label Price Differences of Manufactured Food Products," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 157-171, June.
    3. Steahr, Thomas E. & Roberts, Tanya, 1993. "Microbial Foodborne Disease: Hospitalizations, Medical Costs and Potential Demand for Safer Food," Working Papers 116110, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. McLaughlin, Edward W. & Rao, Vithala R., 1987. "An Exploratory Modeling of the Decision Process of New Product Selection by Supermarket Buyers," Staff Papers 186635, Cornell University, Department of Applied Economics and Management.
    5. Fletcher, Stanley M. & McWatters, Kay H. & Resurreccion, Anna V.A., 1990. "Analysis Of Consumer'S Willingness To Pay For New Fried Food Prepared From Cowpea Flour," Working Papers 115909, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    6. Lopez, Rigoberto A. & Dorsainvil, Daniel, 1988. "The Degree and Sources of Oligopsony Power: An Application to the Haitian Coffee Market," Working Papers 115901, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    7. Mark E. Smith & Eileen O. van Ravenswaay & Stanley R. Thompson, 1988. "Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 513-520.
    8. Caswell, Julie A., 1988. "An Alternative Measure Of Aggregate Concentration With An Application To The Agribusiness Sector," Working Papers 115904, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    9. Eom, Young Sook, 1993. "Pesticide Residue Risks, Produce Choice, and Valuation of Food Safety: A Random Utility Approach," Working Papers 116113, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    10. Steahr, Thomas E. & McMullin, Pamela, 1991. "An Interdisciplinary Framework For The Analysis Of Foodborne Disease," Working Papers 116100, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    11. Roberts, Tanya, 1987. "Salmonellosis Control: Estimated Economic Benefits," Working Papers 115797, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    12. Richard T. Rogers & Julie A. Caswell, 1988. "Strategic management and the internal organization of food marketing firms," Agribusiness, John Wiley & Sons, Ltd., vol. 4(1), pages 3-10.
    13. Caswell, Julie A. & Cotterill, Ronald W., 1988. "New Theoretical Approaches To Measuring Industry Performance," Working Papers 115806, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    14. Loehman, Edna T., 1991. "Alternative Measures of Benefit for Nonmarket Goods Which are Substitutes or Complements for Market Goods," Working Papers 115913, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    15. McLaughlin, Edward W. & Rao, Vithala R., 1988. "The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency," Working Papers 115905, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    16. Azzam, Azzeddine M. & Pagoulatos, Emilio & Schroeter, John R., 1988. "Agricultural Price Spreads And Market Performance," Working Papers 115900, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    17. Manalo, Alberto B., 1989. "Benefits Sought by Apple Consumers," Working Papers 115908, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    18. Johnson, D. Gale & Connor, John M. & Josling, Timothy E. & Schmitz, Andrew & Schuh, G. Edward, 1989. "Concentration Issues In The U.S. Beef Subsector," Working Papers 115907, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    19. Dorsainvil, Daniel & Lopez, Rigoberto A., 1988. "The Sources of Oligopsony Power in the Haitian Coffee Market," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270443, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. McLaughlin, Edward W., 1991. "NE-165 Case Study: The Fresh Company," Working Papers 116098, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    21. Rogers, Richard T. & Tokle, Robert J., 1993. "Advertising Expenditures in U.S. Manufacturing Industries, 1967 and 1982," Working Papers 116112, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    22. Williams, Richard A. & Brown, Robert N., 1991. "Health And Safety Regulation Of Small, High-Risk Subpopulations," Working Papers 115914, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    23. Cotterill, Ronald W. & Pinkerton, Don C., 1993. "Motives for Mergers in Food Manufacturing," Working Papers 116111, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    24. Lopez, Rigoberto A., 1988. "Political Economy of the United States Sugar Policies," Working Papers 115808, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    25. Caswell, Julie A. & Kleinschmit, Jaana K., 1993. "Economic Criteria for Settling Federalism Disputes with an Application to Food Safety Regulation," Working Papers 116114, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    26. Julie A. Caswell & Ronald W. Cotterill, 1988. "Two new theoretical approaches to measuring industry and firm performance," Agribusiness, John Wiley & Sons, Ltd., vol. 4(6), pages 511-520.
    27. Everett B. Peterson & Paul V. Preckel & Thomas W. Hertel & Anya M. McGuirk, 1992. "Impacts of growth stimulants in the domestic livestock sector," Agribusiness, John Wiley & Sons, Ltd., vol. 8(4), pages 287-307.
    28. Lee, David R., 1987. "Labor Market Dynamics in the U.S. Food Sector," Working Papers 115799, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    29. Azzam, Azzeddine M. & Pagoulatos, Emilio, 1989. "Testing for Oligopoly and Oligopsony Power," Working Papers 115906, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    30. Cotterill, Ronald W. & Haller, Lawrence E., 1988. "Entry Barriers, The Queue Of Potential Entrants, And Entry Into Food Retailing Markets," Working Papers 115903, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    31. Hopkins, Yvette S. & Connor, John M., 1992. "A Re-Examination Of Event Studies Applied To Challenged Horizontal Mergers," Working Papers 116105, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    32. Ding, John Y. & Caswell, Julie A., 1991. "A FRAMEWORK FOR ANALYSIS OF ALTERNATIVE RESTRUCTURING STRATEGIES EMPWYED BY LARGE FOOD MANUFACTURERS IN THE 1980s," Working Papers 116101, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    33. Caswell, Julie A., 1988. "A Model of the Intra/Interstate Impacts of State Product Regulation," Working Papers 115902, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    34. Zellner, James A., 1987. "Some Causes And Consequences Of Food Industry Conduct: A Simultaneous Analysis," Working Papers 115805, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    35. Cotterill, Ronald W. & Salih, Hachim M., 1992. "Testing For Risk Premiums In The Wheat-Flour Subsector," Working Papers 116109, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cotterill, Ronald W., 2000. "Dynamic Explanations of Industry Structure and Performance," Research Reports 25224, University of Connecticut, Food Marketing Policy Center.
    2. Ronald W. Cotterill, 1999. "Continuing Concentration in Food Industries Globally: Strategic Challenges to an Unstable Status Quo," Food Marketing Policy Center Research Reports 049, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    3. Francesco Torrisi & Gianluca Stefani & Chiara Seghieri, 2006. "Use of scanner data to analyze the table wine demand in the Italian major retailing trade," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 391-403.
    4. Xiao, Wei, 2008. "The Competitive and Welfare Effects of New Product Introduction: The Case of Crystal Pepsi," Research Reports 149938, University of Connecticut, Food Marketing Policy Center.
    5. Cotterill, Ronald W., 1994. "Scanner Data: New Opportunities For Demand And Competitive Strategy Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-15, October.
    6. Ronald W. Cotterill, 1999. "High cereal prices and the prospects for relief by expansion of private label and antitrust enforcement," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 229-245.
    7. Ronald W. Cotterill, 1999. "Continuing Concentration in the U.S.: Strategic Challenges to an Unstable Status Quo," Food Marketing Policy Center Research Reports 048, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    8. Jean‐Pierre Dubé, 2005. "Product Differentiation and Mergers in the Carbonated Soft Drink Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(4), pages 879-904, December.
    9. Junko Kinoshita & Nobuhiro Suzuki & Tamotsu Kawamura & Yasuhito Watanabe & Harry M. Kaiser, 2001. "Estimating own and cross brand price elasticities, and price-cost margin ratios using store-level daily scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 515-525.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen, Hong & Haller, Lawrence E., 1994. "Price Determination in the Bottled Water Industry: A Case Study of Poland Spring," Working Papers 116165, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    2. Bhuyan, Sanjib & Cotterill, Ronald W., 1994. "Countervailing Power and Seller Performance in U.S. Food and Tobacco Manufacturing Industries," Working Papers 116163, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Ding, John Y. & Caswell, Julie A. & Rogers, Richard T., 1993. "Restructuring's Effect on Related and Unrelated Diversification Among Top Food Manufacturing Firms in the 1980s," Working Papers 116118, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. Caswell, Julie A. & Kleinschmit, Jaana K., 1993. "Economic Criteria for Settling Federalism Disputes with an Application to Food Safety Regulation," Working Papers 116114, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    5. Ding, John Y. & Caswell, Julie A. & Zhou, Furen, 1997. "Relatedness And Performance: A Reexamination Of The Diversification-Performance Link," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(1), pages 1-8, February.
    6. Steahr, Thomas E. & Roberts, Tanya, 1993. "Microbial Foodborne Disease: Hospitalizations, Medical Costs and Potential Demand for Safer Food," Working Papers 116110, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    7. Cotterill, Ronald W. & Pinkerton, Don C., 1993. "Motives for Mergers in Food Manufacturing," Working Papers 116111, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    8. Cotterill, Ronald W. & Salih, Hachim M., 1992. "Testing For Risk Premiums In The Wheat-Flour Subsector," Working Papers 116109, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    9. Connor, John M. & Peterson, Everett B., 1993. "New Estimates of Welfare and Consumer Losses in U.S. Food Manufacturing," Staff Papers 200402, Purdue University, Department of Agricultural Economics.
    10. Cotterill, Ronald W. & Haller, Lawrence E., 1988. "Entry Barriers, The Queue Of Potential Entrants, And Entry Into Food Retailing Markets," Working Papers 115903, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    11. Perloff, Jeffrey M, 1991. "Econometric analysis of imperfect competition and implications for trade research," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt46w1j22d, Department of Agricultural & Resource Economics, UC Berkeley.
    12. Tauer, Loren W., 1993. "The Skills and Training Needed by Farm Management Researchers in the Future," Staff Papers 121330, Cornell University, Department of Applied Economics and Management.
    13. Capps, Oral, Jr., 1992. "Research Issues Facing The Food Distribution Sector: A Look Ahead," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(2), pages 1-20, June.
    14. Islam Hassouneh & Teresa Serra & José M. Gil, 2010. "Price transmission in the Spanish bovine sector: the BSE effect," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 33-42, January.
    15. Volpe III, Rickard James, 2014. "National Brands, Private Labels, and Food Price Inflation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-16, November.
    16. Volpe, Richard J., III, 2011. "Evaluating the Performance of U.S. Supermarkets: Pricing Strategies, Competition from Hypermarkets, and Private Labels," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-16, December.
    17. 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 109-137, January.
    18. Ravenswaay, Eileen O. van & McGuirk, Anya, 1992. "Consumer Perspectives on Crop Protection Technology Choice," Staff Paper Series 201158, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    19. Huang, Ju-Chin & Haab, Timothy C. & Whitehead, John C., 2004. "Risk Valuation in the Presence of Risky Substitutes: An Application to Demand for Seafood," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-16, April.
    20. Balagtas, Joseph Valdes & Binkley, James K. & Volpe, Richard & Young, Jeffrey S., 2014. "Competition between Private Labels and National Brands: a Simple Econometric Test and Application to Dairy Markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170544, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Demand and Price Analysis; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:rpspwp:116168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/drumaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.