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Preferences, market structure, and welfare evaluations in the Argentinean FFP industry: a case in Buenos Aires Province

  • González, Julia
  • Lacaze, María Victoria

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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File URL: http://nulan.mdp.edu.ar/1563/
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Paper provided by Centro de Documentación, Facultad de Ciencias Económicas y Sociales, Universidad Nacional de Mar del Plata in its series Nülan. Deposited Documents with number 1563.

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Date of creation: 2012
Date of revision:
Publication status: Published in Agribusiness, 28(3), 2012, pp. 341-360
Handle: RePEc:nmp:nuland:1563
Contact details of provider: Postal: Funes 3250 - (7600) Mar del Plata
Phone: +54 (223) 474-9696
Web page: http://eco.mdp.edu.ar
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  1. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-83, June.
  2. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  3. Eliza M. Mojduszka & Julie A. Caswell & J. Michael Harris, 2001. "Consumer choice of food products and the implications for price competition and government policy," Agribusiness, John Wiley & Sons, Ltd., vol. 17(1), pages 81-104.
  4. Elena Lopez & Rigoberto A. Lopez, 2009. "Demand for differentiated milk products: implications for price competition," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 453-465.
  5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  6. 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.
  7. Amil Petrin, 2002. "Quantifying the Benefits of New Products: The Case of the Minivan," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 705-729, August.
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