All Tuna Is Not Created Equal: The Existence Of Quantity Surcharges Due To Product Differentiation
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.
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- Nevo, Aviv, 1998.
"Measuring Market Power in the Ready-To-Eat Cereal Industry,"
Food Marketing Policy Center Research Reports
037, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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