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All Tuna Is Not Created Equal: The Existence Of Quantity Surcharges Due To Product Differentiation

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  • McCluskey, Jill J.
  • Chouinard, Hayley H.
  • Sprott, David E.

Abstract

Quantity surcharges exist when unit prices are higher for larger packages. We hypothesize that various sizes of goods are differentiated products, and this explains some surcharges. Estimating a random-coefficients logit demand model, we examine own and cross elasticities to determine the level of differentiation between products with different size packages.

Suggested Citation

  • McCluskey, Jill J. & Chouinard, Hayley H. & Sprott, David E., 2004. "All Tuna Is Not Created Equal: The Existence Of Quantity Surcharges Due To Product Differentiation," 2004 Annual meeting, August 1-4, Denver, CO 20226, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20226
    DOI: 10.22004/ag.econ.20226
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    References listed on IDEAS

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    1. Nevo, Aviv, 2001. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Econometrica, Econometric Society, vol. 69(2), pages 307-342, March.
    2. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    3. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
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