Dynamic Model of Fresh Fruit Promotion: A Household Production Approach
Many studies consider the dynamic effects of commodity promotion on demand, but few derive the theoretical basis for these effects in a model of optimal consumer behavior. This study develops a dynamic household production model of U.S. fresh fruit consumption, which it uses to evaluate the effectiveness of advertising and promotion expenditures by the Washington Apple Commission. Estimates from a dynamic-dual Generalized Leontief system show direct advertising to be marginally more effective than retail promotion in increasing apple sales, but advertising has positive spillover effects to sales of other fruits, whereas promotion reduces sales of competing products. Copyright 1999, Oxford University Press.
Volume (Year): 81 (1999)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:81:y:1999:i:1:p:195-211. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.