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

  • González, Julia
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    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.

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    File URL: http://nulan.mdp.edu.ar/1674/
    File Function: original version
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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 1674.

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    Date of creation: Nov 2012
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    Handle: RePEc:nmp:nuland:1674
    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. 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.
    2. 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 (IAMA), vol. 3(02).
    3. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
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