Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-25T19:55:36.188Z Has data issue: false hasContentIssue false
  • English
  • Français

Scanner Data: New Opportunities for Demand and Competitive Strategy Analysis

Published online by Cambridge University Press:  15 September 2016

Ronald W. Cotterill
Ronald W. Cotterill*
Affiliation:
Food Marketing Policy Center. Department of Agricultural and Resource Economics, University of Connecticut
Get access

Abstract

This paper reviews prior research by agricultural economists on the demand for food products using scanner data. Thereafter, a differentiated product's oligopoly model with Bertrand price competition is developed and used to specify brand level demand and oligopoly price reaction equations. The model has sufficient detail to estimate brand level price elasticities and price response elasticities which in turn can be used to estimate three indices of market power. The first index estimated is the familiar Rothschild Index. The paper develops estimates two new indexes, the observed index and the Chamberlin quotient for tacit collusion. It concludes with comments on how the proposed method for the measurement of market power in a differentiated oligopoly can be improved.

Type
Invited Presentation
Information
Agricultural and Resource Economics Review , Volume 23 , Issue 2 , October 1994 , pp. 125 - 139
Copyright
Copyright © 1994 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baker, J.B., and Bresnahan, T.F. The Gains from Merger or Collusion in Product-Differentiated Industries. Journal of Industrial Economics 33(4) 1985: 427–43.CrossRefGoogle Scholar
Brooker, J.R., Eastwood, D.B., and Gray, M.D. The Impact of Advertising on Consumer Demand for Beef: An Application of Scan Data. Journal of Food Products Marketing 2(1) 1994: 17–35.Google Scholar
Capps, O. Jr., and Nayga, R.M. Jr. Leanness and Convenience Dimensions of Beef Products: An Exploratory Analysis Using Scanner Data. Bulletin 1963 (April), The Texas Agricultural Experiment Station, Texas A&M University, College Station, 1991.Google Scholar
Capps, O. Jr. Utilizing Scanner Data to Estimate Retail Demand Functions for Meat Products. American Journal of Agricultural Economics 71(3) 1989: 750–60.CrossRefGoogle Scholar
Chalfant, J.A. A Globally Flexible, Almost Ideal Demand System. Journal of Business and Economic Statistics 5: 1987: 233–42.Google Scholar
Chevalier, J.A. Capitol Structure and Product Market Competition: An Empirical Study of Supermarket Pricing. Ph. D. diss., Harvard University, 1993.Google Scholar
Chevalier, J.A. Capitol Structure and Product Market Competition: An Empirical Study of Supermarket Pricing. (January) Harvard University, 1994.Google Scholar
Cooper, L.G., and Nakanishi, M. Market-Share Analysis. Boston: Kluwer Academic Press, 1988.Google Scholar
Cotterill, R.W., and Haller, L.E. Market Strategies in Branded Dairy Product Markets. In Competitive Strategy Analysis for Agricultural Marketing Cooperatives, ed. Cotterill, R.W., 99–144. Boulder: Westview Press, 1994.Google Scholar
Deaton, A. and Muellbauer, J., Economics and Consumer Behavior, Cambridge, England: Cambridge University Press, 1980.Google Scholar
Deneckere, R., and Davidson, C. Incentives to Form Coalitions with Bertrand Competition. Rand Journal of Economics 16(4) 1985: 473–86.CrossRefGoogle Scholar
Duvall, J.S. A Study of Horizontal and Vertical Competitive Influence on Retail Price in the U.S. Soft Drink Industry. M.S. thesis, University of Connecticut, 1993.Google Scholar
Froeb, L.M., and Werden, G.J. Residual Demand Estimation for Market Delineation: Complications and Limitations. Review of Industrial Organization 6(1) 1991: 33–48.Google Scholar
Green, R., and Alston, J.M. Elasticities in AIDS Models. American Journal of Agricultural Economics 70(2) 1990: 442–445.Google Scholar
Greer, D.F. Industrial Organization and Public Policy. 3d ed. New York: Macmillan, 1992.Google Scholar
Haller, L.E. Branded Product Pricing Strategies in the Cottage Cheese Market: Cooperative Versus Proprietary Firms. In Competitive Strategy Analysis in the Food System, ed. Cotterill, R.W., 155–77. Boulder: Westview Press, 1993.Google Scholar
Haller, L.E. Branded Product Pricing Strategies in the Catsup and Cottage Chesse Industries. Ph. D. diss. University of Connecticut, 1994a.Google Scholar
Haller, L.E. The Effects of the Beatrice-ConAgra Merger on Consumer Welfare. Presented at the NE165/WRCC-72 Research Conference, Interactions Between Public Policies and Private Strategies in the Food Industries, June 26-8, Montreal, Quebec, 1994b.Google Scholar
Hausman, J.A., and Taylor, W.E. Panel Data and Unobservable Individual Effects. Econometrica 49(6) 1981: 1377–98.Google Scholar
Iskow, J., Kolodinsky, J., and Russo, D. Demand for Specialty Products and their Mass Market Counterparts: The Case of Pure Maple Syrup. University of Vermont. Selected paper presented at the 1994 Northeast Agricultural Economics Association annual meeting, 1994.Google Scholar
Langan, G., and Cotterill, R.W. Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks. Paper presented at the American Agricultural Economics Association annual meeting, August 7-10, San Diego, CA, 1994.Google Scholar
Liang, J.N. Price Reaction Functions and Conjectural Variations: An Application to the Breakfast Cereal Industry. Review of Industrial Organization 4(2) 1989: 31–58.Google Scholar
McLaughlin, E., and Lesser, W. Experimental Price Variability and Consumer Response: Tracking Potato Sales with Scanners. Agricultural Staff Paper 86-28 (September), Cornell University, 1986.Google Scholar
Scherer, F.M., and Ross, D. Industrial Market Structure and Economic Performance. Boston: Houghton Mifflin, 1990.Google Scholar
Tellis, G.J. The Price Elasticity of Selective Demand: A Meta-Analysis of Econometric Models of Sales. Journal of Marketing Research (Nov) 1988: 331–41.Google Scholar
U.S. Department of Justice. 1992 Horizontal Merger Guidelines. Washington D.C. April 2, 1992.Google Scholar