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Which Brands Gain Share from Which Brands? Inference from Store-Level Scanner Data

50 Pages Posted: 8 Sep 2012  

R.D. van Oest

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Tinbergen Institute

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Multiple version iconThere are 2 versions of this paper

Date Written: January 1, 2003

Abstract

Market share models for weekly store-level data are useful to understand competitive structuresby delivering own and cross price elasticities. These models can however not be used toexamine which brands lose share to which brands during a specific period of time. It is for thispurpose that we propose a new model, which does allow for such an examination. We illustratethe model for two product categories in two markets, and we show that our model has validity interms of both in-sample fit and out-of-sample forecasting. We also demonstrate how our modelcan be used to decompose own and cross price elasticities to get additional insights into thecompetitive structure.

Keywords: market shares, competitive structure, elasticity decomposition, share-switching, store-level scanner data

JEL Classification: M, M31

Suggested Citation

Oest, R.D. van and Franses, Philip Hans, Which Brands Gain Share from Which Brands? Inference from Store-Level Scanner Data (January 1, 2003). ERIM Report Series Reference No. ERS-2003-076-MKT. Available at SSRN: https://ssrn.com/abstract=2143060

Rutger Van Oest (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8946 (Phone)
+31 10 408 9162 (Fax)

Tinbergen Institute

P.O. Box 1738
H16-32
3000 DR Rotterdam
Netherlands

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

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