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Product diffusion and the demand for new food products

Author

Listed:
  • Yann Duval

    (School of Management, Asian Institute of Technology, Thailand, and Department of Agricultural Economics, Washington State University, Pullman, WA 99164)

  • Arlo Biere

    (Department of Agricultural Economics, Kansas State University,, Manhattan, KS 66506)

Abstract

This paper extends the theory of product diffusion associated with consumer demand for new products. New food products encompass both truly new branded or value-added products and nontraditional food and agricultural products introduced from another region or culture. Bass's new-product diffusion theory is integrated with economic demand models to develop simple diffusion-demand models to account, simultaneously, for the diffusion process and for the traditional effects of price and income. Models are tested using widely available aggregate trade data on nontraditional fruits consumed in Indonesia, Malaysia, Singapore, France, and England. Dynamic diffusion-demand models outperform both the standard diffusion model and the static double-log demand model-in and out of sample-and produced parameter estimates for price and income that differ from those obtained with models without a diffusion process. [Econ-Lit citations: L660, C200, C530]. © 2002 Wiley Periodicals, Inc.

Suggested Citation

  • Yann Duval & Arlo Biere, 2001. "Product diffusion and the demand for new food products," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 23-36.
    • Handle: RePEc:wly:agribz:v:18:y:2001:i:1:p:23-36
    DOI: 10.1002/agr.10005
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    References listed on IDEAS

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    1. Marc Nerlove, 1956. "Estimates of the Elasticities of Supply of Selected Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 496-509.
    2. Vijay Mahajan & Robert A. Peterson, 1978. "Innovation Diffusion in a Dynamic Potential Adopter Population," Management Science, INFORMS, vol. 24(15), pages 1589-1597, November.
    3. Cong Tru Le & Harry M. Kaiser & William Tomek, 1998. "Export promotion and import demand for US red meat in selected Pacific Rim countries," Agribusiness, John Wiley & Sons, Ltd., vol. 14(2), pages 95-105.
    4. Marco Lippi & Lucrezia Reichlin, 1994. "Diffusion of Technical Change and the Decomposition of Output into Trend and Cycle," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(1), pages 19-30.
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    Cited by:

    1. Linda Niehm & Keila Tyner & Mack Shelley & Margaret Fitzgerald, 2010. "Technology Adoption in Small Family-Owned Businesses: Accessibility, Perceived Advantage, and Information Technology Literacy," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 498-515, December.
    2. Matthias Göcke & Svetlana Fedoseeva, 2016. "Optimal Monopolist Export Pricing with Dynamic Demand and Learning Curve Effects," Open Economies Review, Springer, vol. 27(3), pages 447-469, July.

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