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

Tinbergen Institute Discussion Paper No. 2003-079/4

50 Pages Posted: 18 Nov 2003

See all articles by R.D. van Oest

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: September 2003

Abstract

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

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

JEL Classification: C10, C51, C53, M31

Suggested Citation

van Oest, Rutger and Franses, Philip Hans, Which Brands Gain Share from Which Brands? Inference from Store-Level Scanner Data (September 2003). Tinbergen Institute Discussion Paper No. 2003-079/4. Available at SSRN: https://ssrn.com/abstract=457581 or http://dx.doi.org/10.2139/ssrn.457581

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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