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Market definition through demand-and-supply estimations, with an application to the Argentine dishwashing detergent industry

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  • Germán Coloma

Abstract

This paper develops a method for market definition using demand-and-supply estimations. That method is then applied to the Argentine dishwashing detergent industry, using data from the years 2022-2024. The results are compared to the ones obtained using only demand estimations, and the conclusion is that the use of supply price equations generates a considerable improvement in those results. Through our empirical estimations, we also find that the dishwashing detergent industry in Argentina seems to be divided in two relevant markets: one that includes the two main detergent brands, and another one that encompasses the remaining brands.

Suggested Citation

  • Germán Coloma, 2025. "Market definition through demand-and-supply estimations, with an application to the Argentine dishwashing detergent industry," CEMA Working Papers: Serie Documentos de Trabajo. 913, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:913
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    File URL: https://ucema.edu.ar/sites/default/files/2025-12/dt913.pdf
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    References listed on IDEAS

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    1. Julian Alston & James Chalfant & Nicholas Piggott, 2002. "Estimating and testing the compensated double-log demand model," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1177-1186.
    2. Germán Coloma, 2023. "Demand estimation and market definition in quality-differentiated products: The case of beer in Argentina," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 48-64.
    3. Perloff,Jeffrey M. & Karp,Larry S. & Golan,Amos, 2007. "Estimating Market Power and Strategies," Cambridge Books, Cambridge University Press, number 9780521011143, November.
    4. Germán Coloma, 2024. "Competition and product diferentiation in the argentine chocolate bar industry," CEMA Working Papers: Serie Documentos de Trabajo. 869, Universidad del CEMA.
    5. John T. Cuddington & Leila Dagher, 2015. "Estimating Short and Long-Run Demand Elasticities: A Primer with Energy-Sector Applications," The Energy Journal, , vol. 36(1), pages 185-210, January.
    6. Germán Coloma, 2011. "Market Delineation And Merger Simulation: A Proposed Methodology With An Application To The Argentine Biscuit Market," Journal of Competition Law and Economics, Oxford University Press, vol. 7(1), pages 113-131.
    7. repec:aen:journl:ej36-1-07 is not listed on IDEAS
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    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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