The Role of Retail Prices and Promotions in Determining Cigarette Brand Market Shares
Over the past two decades, two forms of price competition have emerged within the cigarette industry: the introduction and spread of discount and deep discount cigarettes and the increased use of price-related promotions. In this paper, we use quarterly market-level, scanner-based data on cigarette prices, promotions, and sales for 50 US markets over the period from 1994-IV through 2002-II to examine the impact of price and promotions on market shares for premium, discount, and deep discount brand cigarettes. Our estimates indicate that changes in relative prices, including those resulting from promotions, account for much of observed changes in market shares. Copyright Springer 2006
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- Paul Klemperer & Jeremy Bulow, 1998.
"The Tobacco Deal,"
Economics Series Working Papers
1999-W11, University of Oxford, Department of Economics.
- Bulow, Jeremy I. & Klemperer, Paul, 1999. "The Tobacco Deal," CEPR Discussion Papers 2125, C.E.P.R. Discussion Papers.
- Jeremy Bulow & Paul Klemperer, 1999. "The Tobacco Deal," HEW 9904002, EconWPA.
- Bulow, J. & Klemperer, P., 1999. "The Tobacco Deal," Economics Papers 1999-w11, Economics Group, Nuffield College, University of Oxford.
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