How Much Do Consumers Benefit from New Brand Introductions? The Case of Potato Chips
This study identifies consumer welfare from new brand introductions in the potato chip market. Price and variety effects of new brand introduction are measured by estimating a demand system underlying an expenditure function. Variety effects are positive in most cities, while price effects are generally negative when consumers exhibit some variety preference. Variety effects dominate price effects in most cities; an opposite effect observed in some cities may indicate high entry barriers or joint brand- and price-based marketing strategies. Results indicate that consumers and producers gain from product innovations, but substantial regional variation exists in the distributional effects of new brand introduction.
Volume (Year): 36 (2011)
Issue (Month): 1 (April)
|Contact details of provider:|| Web page: http://waeaonline.org/|
More information through EDIRC
References listed on IDEAS
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.:
- Ardelean, Adina & Lugovskyy, Volodymyr, 2010. "Domestic productivity and variety gains from trade," Journal of International Economics, Elsevier, vol. 80(2), pages 280-291, March.
- Jeffrey T. LaFrance, 1991. "Consumer's surplus versus compensating variation revisited," Monash Economics Working Papers archive-35, Monash University, Department of Economics.
- Harikesh Nair & Jean-Pierre Dubé & Pradeep Chintagunta, 2005.
"Accounting for Primary and Secondary Demand Effects with Aggregate Data,"
INFORMS, vol. 24(3), pages 444-460, November.
- Nair, Harikesh S. & Dube, Jean-Pierre & Chintagunta, Pradeep, 2004. "Accounting for Primary and Secondary Demand Effects with Aggregate Data," Research Papers 1949, Stanford University, Graduate School of Business.
- Marina Giacomo, 2008. "GMM estimation of a structural demand model for yogurt and the effects of the introduction of new brands," Empirical Economics, Springer, vol. 34(3), pages 537-565, June.
- Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
- Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
- Stathis Klonaris & David Hallam, 2003. "Conditional and unconditional food demand elasticities in a dynamic multistage demand system," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 503-514.
- Carlos Arnade & Munisamy Gopinath, 2006. "The Dynamics of Individuals' Fat Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 836-850.
- J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
- Timothy J. Richards & Stephen F. Hamilton, 2006. "Rivalry in Price and Variety among Supermarket Retailers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 710-726.
- Geoffrey M. Pofahl & Timothy J. Richards, 2007. "Valuation of New Products in Attribute Space," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 402-415.
When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:105529. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.