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Heterogeneous preferences, market structure and new goods in the Argentinean frozen fried potato industry

Author

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  • González, Julia

Abstract

This article studies the preference structure of frozen fried potatoes consumers in Mar del Plata, Argentina, and the effect of changes in market structure and the addition of a new product on prices, market shares, and welfare. Heterogeneity in consumer preferences is found, driven by demographic characteristics. 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 results emphasize the importance of both agronomic issues and consumer preferences for the success of the introduction of a credence-attribute in a food industry.

Suggested Citation

  • González, Julia, 2012. "Heterogeneous preferences, market structure and new goods in the Argentinean frozen fried potato industry," Nülan. Deposited Documents 1674, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
  • Handle: RePEc:nmp:nuland:1674
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    File URL: http://nulan.mdp.edu.ar/1674/1/01375.pdf
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    References listed on IDEAS

    as
    1. Gil, Jose Maria & Gracia, Azucena & Sanchez Garcia, Mercedes, 2000. "Market Segmentation And Willingness To Pay For Organic Products In Spain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 3(02).
    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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