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High Cereal Prices and the Prospects for Relief by Expansion of Private Label and Antitrust Enforcement

Listed author(s):
  • Ronald W. Cotterill

    ()

    (University of Connecticut)

Congressmen Gejdenson and Schumer should be commended for their persistent interest in the performance of the ready to eat cereal industry. The release of their well documented and thorough report, "Consumers in a Box" a year ago focused media attention on high cereal prices, which in turn documented widespread consumer anger over this industry's performance. Today, the Congressmen have asked for an assessment of the factors that contribute to high cereal prices, and the outlook for consumer relief from the expansion of private label cereals, and more effective antitrust enforcement. This is no small task. I would like to begin by responding to the industry's rebuttal to the Congressmen's report. None of the cereal manufacturers has commented publicly on the Congressional inquiry. Instead, they have designated Mr. Jeffrey Nedelman of the Grocery Manufacturers of America as their common spokesman. The GMA's entire written response consists of a three page press release that contains seven "facts". The fact sheet is reproduced in the appendix.

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File URL: http://www.zwickcenter.uconn.edu/documents/issuepapers/ip11.pdf
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Paper provided by University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy in its series Issue Papers with number 11.

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Length: 42 pages
Date of creation: Mar 1996
Handle: RePEc:zwi:ipaper:11
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  1. Ronald W. Cotterill & Lawrence E. Haller, 1997. "An Econometric Analysis of the Demand for RTE Cereal: Product Market Definition and Unilateral Market Power Effects," Food Marketing Policy Center Research Reports 035, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  2. Langan, Glenn E. & Cotterill, Ronald W., 1994. "Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks," Working Papers 116168, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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