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Preferences, Market Structure, and Welfare Evaluations in the Argentinean FFP Industry: A Case in Buenos Aires Province

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  • Julia González
  • M. Victoria Lacaze

Abstract

This paper analyzes the demand of frozen fried potatoes in an important city of Argentina, Mar del Plata, and the effect of changes in market structure on consumer welfare. We find that high income individuals are more concerned about health and nutrition, and that younger and lower-income consumers are more price sensitive. The results suggest that consumer surplus would decrease with a merger between the two smaller firms of the market, and would increase if the market turned into a single-product firms industry. The influence of these counterfactual changes would be greater for wealthier and older individuals. This article contributes to the analysis of a food market which is rapidly growing in developing countries and is starting to play a more relevant role in consumers' diet.
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Suggested Citation

  • Julia González & M. Victoria Lacaze, 2012. "Preferences, Market Structure, and Welfare Evaluations in the Argentinean FFP Industry: A Case in Buenos Aires Province," Agribusiness, John Wiley & Sons, Ltd., vol. 28(3), pages 341-360, June.
    • Handle: RePEc:wly:agribz:v:28:y:2012:i:3:p:341-360
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    Cited by:

    1. Lacaze, María Victoria & González, Julia, 2018. "New goods with new attributes: combining revealed and stated preferences to assess the effect of a novel quality label in the food industry," Nülan. Deposited Documents 2976, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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