Market Delineation and Demand Structure

12 Pages Posted: 25 Mar 2020

See all articles by Frank Asche

Frank Asche

Stavanger University College

Frode Steen

Norwegian School of Economics (NHH) - Department of Economics

Kjell G. Salvanes

Norwegian School of Economics (NHH) - Department of Economics; IZA Institute of Labor Economics

Date Written: February 1997

Abstract

This paper addresses the relationship between the cointegration approach to market delineation and the more traditional approach of analyzing the demand structure among different products in terms of degree of substitutability. Cointegration tests for market delineation and estimation of a dynamic system of demand equations are undertaken utilizing the same data set. The data set consists of three high‐quality seafood products in the European Union. The results are encouraging as the results from the two approaches are not only compatible, but are also complementary in the sense that they provide more information together than they do separately.

Keywords: cointegration, dynamic demand systems, error correction models, market delineation, D120, L110, Q130

Suggested Citation

Asche, Frank and Steen, Frode and Salvanes, Kjell G., Market Delineation and Demand Structure (February 1997). American Journal of Agricultural Economics, Vol. 79, Issue 1, pp. 139-150, 1997, Available at SSRN: https://ssrn.com/abstract=3560480 or http://dx.doi.org/10.2307/1243949

Frank Asche (Contact Author)

Stavanger University College ( email )

PO Box 2557
Ullandhaug
4004 Stavanger
Norway

Frode Steen

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway
+47 55 959 259 (Phone)
+47 55 959 543 (Fax)

Kjell G. Salvanes

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway
+47 5 595 9315 (Phone)
+47 5 595 9543 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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