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Modelling asymmetric consumer demand response: Evidence from scanner data

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  • Vespignani, Joaquin L.

Abstract

We used scanner data to test whether two competitive commodities respond symmetrically by volume to price changes. Our results indicate that consumers of the most expensive good (Coca-Cola) respond quite symmetrically when prices go either up or down. In contrast, consumers of the less expensive good (Pepsi-Cola) respond quite asymmetrically. We also introduce the substitution effect in ARDL asymmetric modelling as scanner data permits, showing that most previous asymmetric models using this technique experience omitted variables since this parameter is excluded.

Suggested Citation

  • Vespignani, Joaquin L., 2012. "Modelling asymmetric consumer demand response: Evidence from scanner data," MPRA Paper 55601, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55601
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    File URL: https://mpra.ub.uni-muenchen.de/55601/1/MPRA_paper_55601.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Alice Ciccone & Emilia Soldani, 2021. "Stick or Carrot? Asymmetric Responses to Vehicle Registration Taxes in Norway," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 59-94, September.

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    More about this item

    Keywords

    Scanner data; Asymmetric consumer demand; Autoregressive;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • D0 - Microeconomics - - General
    • D00 - Microeconomics - - General - - - General
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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