Abstract

http://ssrn.com/abstract=1002749
 


 



Brand-Supermarket Demand for Breakfast Cereals and Retail Competition


Benaissa Chidmi


Texas Tech University - Department of Agricultural and Applied Economics

Rigoberto A. Lopez


University of Connecticut - College of Agricultural and Natural Resources


American Journal of Agricultural Economics, Vol. 89, No. 2, pp. 324-337, May 2007

Abstract:     
The Berry, Levinsohn, and Pakes (1995) market equilibrium model is extended to the supermarket chain level to examine consumer choices and retail competition for thirty-seven brands of breakfast cereals in Boston. Estimated taste parameters for product characteristics vary significantly across consumers. Although consumers are price-sensitive with respect to their chosen cereals, they exhibit strong brand and supermarket loyalty. Retail markups increase and marginal costs decrease with grocery market shares, attesting to oligopoly power with efficiencies. Markups decrease with the own-price elasticity of demand, with Corn Flakes having the highest markups. A detailed picture of consumer response and supermarket competition is provided.

Accepted Paper Series





Not Available For Download

Date posted: July 26, 2007  

Suggested Citation

Chidmi, Benaissa and Lopez, Rigoberto A., Brand-Supermarket Demand for Breakfast Cereals and Retail Competition. American Journal of Agricultural Economics, Vol. 89, No. 2, pp. 324-337, May 2007. Available at SSRN: http://ssrn.com/abstract=1002749 or http://dx.doi.org/10.1111/j.1467-8276.2007.00994.x

Contact Information

Benaissa Chidmi (Contact Author)
Texas Tech University - Department of Agricultural and Applied Economics ( email )
Box 42132
Lubbock, TX 79409-2132
United States
Rigoberto A. Lopez
University of Connecticut - College of Agricultural and Natural Resources ( email )
1376 Storrs Road, U-21
Storrs, CT 06269-4021
United States
(860) 486-1921 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 940

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.704 seconds