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Market Delineation and Demand Structure

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  • Kjell G. Salvanes

Abstract

This paper addresses the relationship between the cointegration approach to market delineation and the more traditional approach of analyzing the demand structure among different products in terms of degree of substitutability. Cointegration tests for market delineation and estimation of a dynamic system of demand equations are undertaken utilizing the same data set. The data set consists of three high-quality seafood products in the European Union. The results are encouraging as the results from the two approaches are not only compatible, but are also complementary in the sense that they provide more information together than they do separately. Copyright 1997, Oxford University Press.

Suggested Citation

  • Kjell G. Salvanes, 1997. "Market Delineation and Demand Structure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 139-150.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:1:p:139-150
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    File URL: http://hdl.handle.net/10.2307/1243949
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