SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Dhar, Tirtha Pratim; Chavas, Jean-Paul; Cotterill, Ronald W.; Gould, Brian W..

Market structure and strategic pricing for leading brands sold by Coca Cola and Pepsi Inc. are investigated in the context of a flexible demand specification and structural price equations. This approach is more general than prior studies that rely upon linear approximations and interactions of an inherently nonlinear problem. We test for Bertrand equilibrium, Stackelberg equilibrium, collusion, and a general conjectural variation (CV) specification. This nonlinear Full Information Maximum Likelihood (FIML) estimation approach provides useful information on the nature of imperfect competition and the extent of market power.

Post Merger Price Conduct: A Case Study of Pricing in Connecticut Markets After the 1996 Royal Ahold-Stop & Shop Merger

Palavras-chave: Market structure; Strategic pricing; Conjectural variations; Price reaction; Carbonated soft drinks; Demand and Price Analysis.

Ano: 2002

URL: http://purl.umn.edu/25231

Cotterill, Ronald W.; Dhar, Tirtha Pratim; Franklin, Andrew W..

This study was provided to the staff at the Federal Trade Commission in October, 1999. It expands the analysis of divestitures that was presented in an April 1999 report to the FTC (An Antitrust Economic Analysis of the Proposed Acquisition of Supermarkets General Holdings Corporation by Ahold Acquisition Inc., Food Marketing Policy Center Research Report No. 46). The earlier study focused on market share changes in divested markets. This study examines price conduct. In December 1999, Royal Ahold withdrew its tender offer citing a new and tougher level of enforcement by the Federal Trade Commission. Piecemeal divestitures that sought to preserve competition in local market areas are now recognized as inadequate. The momentum of acquirers in local markets...

ASSESSING THE IMPACT OF INTELLECTUAL PROPERTY RIGHTS IN THE PLANT/SEED INDUSTRY

Palavras-chave: Agribusiness; Demand and Price Analysis; Industrial Organization.

Ano: 1999

URL: http://purl.umn.edu/25198

Foltz, Jeremy D.; Dhar, Tirtha Pratim.

We develop a theoretical model of strategic firm behavior in seeking property rights given multiple property regimes. Our model suggests probability of the loss of trade secrets and revelations through patent applications does play a significant role in the choice of property rights by plant firms.

Strategic Implications of Retail Pricing in the U.S. Fluid Milk Market

Palavras-chave: Research and Development/Tech Change/Emerging Technologies.

Ano: 2004

URL: http://purl.umn.edu/20080

Dhar, Tirtha Pratim; Cox, Thomas L..

We explore brand level strategic interactions between skim/low fat and whole milk brands by estimating detailed price elasticity matrix using quadratic almost ideal demand system for eight major U.S. cities. Results of our analysis suggest that the market and demand behavior of skim/low fat and whole milk brands are different. Demand for skim/low fat milk is more elastic than in the case of whole milk. Highly inelastic demand for large number of Private label whole milk brands suggests 'loss leader' pricing strategy by the retailers. Such pricing strategy does not seem to be the norm in skim/low fat milk market.

MARKET STRUCTURE AND CONSUMER VALUATION IN THE RBST-FREE AND ORGANIC MILK MARKETS

Palavras-chave: Agribusiness.

Ano: 2003

URL: http://purl.umn.edu/22184

Dhar, Tirtha Pratim; Foltz, Jeremy D..

This study uses revealed preferences of consumers to study the consumer valuations of rBST-free and organic milk. The study specifies and estimates a quadratic AIDS model for different milk types using US supermarket scanner data. The introduction of rBST-free and organic milk is used to estimate both competitive and variety effects as measures of consumer valuations. Results show significant consumer valuations for organic milk and to a lesser extent rBST-free milk.

IS SOY MILK? THE ECONOMICS OF THE SOY MILK MARKET

Palavras-chave: Consumer/Household Economics; Industrial Organization.

Ano: 2003

URL: http://purl.umn.edu/22177

Dhar, Tirtha Pratim; Foltz, Jeremy D..

This study uses revealed preferences of consumers to study the consumer benefits from soy milk. The study specifies and estimates structural demand and reduced form models of competition for different milk types using US supermarket scanner data. The introduction of soy milk is used to estimate consumer benefits and valuations. We decompose benefits into two components, competitive and variety effects. Results show relatively small consumer benefits from soy milk.

Strategic Pricing Behavior under Asset Value Maximization

Palavras-chave: Demand Systems; Q-AIDS; Milk markets; Biotechnology; Soy milk; Food Labeling; Demand and Price Analysis; Q130; C300; D120; D400.

Ano: 2004

URL: http://purl.umn.edu/20337

Wang, Shinn-Shyr; Stiegert, Kyle W.; Dhar, Tirtha Pratim.

This paper investigates a comprehensive assessment of firm strategic behavior under financial market uncertainty. A general theoretical model of market value maximization (MVM) is constructed using a traditional capital asset pricing format. The model built on the nonlinear Almost Ideal Demand Systems (AIDS) and structural first-order conditions is developed. By full information maximum likelihood (FIML) estimation, the model evaluates pricing strategies in the U.S. margarine and butter retail markets using 4-week interval scanner data from 1998 to 2002. The model of profit maximization is rejected in favor of the MVM structure, and it indicates that financial market uncertainty plays an important role in the pricing behavior in this industry. We estimate...

An Empirical Assessment of Endogeneity Issues In Demand Analysis for Differentiated Products

Palavras-chave: Market Value Maximization; AIDS; FIML; Model Selection; Risk and Uncertainty.

Ano: 2005

URL: http://purl.umn.edu/19198

Dhar, Tirtha Pratim; Chavas, Jean-Paul; Gould, Brian W..

This article explores the issue of price and expenditure endogeneity in empirical demand analysis. The analysis focuses on the US carbonated soft drink market. We test the null hypothesis that price and expenditures are exogenous in the demand for carbonated soft drinks. Using an Almost Ideal Demand System (AIDS) specification, we strongly reject exogeneity for both prices and expenditures. We find that accounting for price/expenditures endogeneity significantly impacts demand elasticity estimates. We also evaluate the implications of endogeneity issues for testing weak separability.

An Economic Analysis of Product Differentiation under Latent Separability

Palavras-chave: Endogeneity; Separability; Carbonated soft drinks; Almost Ideal Demand System; Demand and Price Analysis.

Ano: 2002

URL: http://purl.umn.edu/25227

Dhar, Tirtha Pratim; Chavas, Jean-Paul; Cotterill, Ronald W..

This paper develops an analysis of markets for differentiated products. It relies on the concept of latent separability for consumer preferences. As proposed by Blundell and Robin, latent separability assumes that purchased products are allocated in the production of latent intermediate utility-yielding goods. Product differentiation can arise when each product makes a different contribution to the production of the latent goods. Latent separability is particularly attractive in the investigation of markets for branded products where the number of brands is large. It allows focusing on the demand for a smaller number of latent goods. Our approach is based on a quadratic almost ideal demand system (Q-AIDS), which provides a flexible representation of...

COST PASS THROUGH IN THE CASE OF SEQUENTIAL OLIGOPOLY: AN EMPIRICAL STUDY OF THE FLUID MILK MARKET

Palavras-chave: Agribusiness.

Ano: 2003

URL: http://purl.umn.edu/21892

Dhar, Tirtha Pratim; Cotterill, Ronald W..

We estimate the cost pass through rates (CPTR) in the Boston fluid milk market while taking into account strategic conduct (Vertical Nash, Vertical Stackleberg) between retailers and processors. By using structural demand and supply specification we estimate and test for the pass through rates at different stages of fluid milk marketing channels. Processors have higher pass through rates than retailers.

Oligopoly Pricing with Differentiated Products: The Boston Fluid Milk Market Channel

Palavras-chave: Cost Pass Through Rate; Oligopoly; Retail; Marketing Channel; Industrial Organization.

Ano: 1999

URL: http://purl.umn.edu/21535

Cotterill, Ronald W.; Dhar, Tirtha Pratim.

We model Boston fluid milk market after taking into account strategic interactions of the processors and retailers and estimate it using monthly propriety retail scanner data and other data from public sources from 1996 to 2000. Market demand is modeled using flexible nested logit demand system and processor level cost is modeled using flexible generalized Leontief cost function. Our modeled is flexible enough to capture the nature of competition between brands within store and across stores. We find that the brands compete much more vigorously within store and than across stores. This structure of competition fits squarely with Slade's (1995) assumption on retail competition. We also explore strategic implications of the North East Dairy Compact on...

Price Transmission in Differentiated Product Market Channels: A Study of the Boston Fluid Milk Market and the North East Dairy Compact

Palavras-chave: Nested logit demand system; Generalized Leontief cost function; Fluid milk; Marketing channel; North East Dairy Compact; Industrial Organization; Livestock Production/Industries.

Ano: 2003

URL: http://purl.umn.edu/25189

Dhar, Tirtha Pratim; Cotterill, Ronald W..

This study develops a two-stage market channel model to analyze pricing in the Boston milk market where retailers are differentiated sellers. A nonlinear model of demand and costs, including firm specific and industry cost shift variables is estimated for each of the four leading supermarkets. Cost pass through rates for industry wide shifts are near 100%; for firm specific costs they range between 32 and 47 percent, suggesting that substantial differentiation and related market power. A test for focal point collusion finds that channel firms elevated retail prices when the Northeast Dairy Compact elevated and stabilized raw milk prices.

TWO-STAGE OLIGOPOLY PRICING WITH DIFFERENTIATED PRODUCT: THE BOSTON FLUID MILK MARKET

Palavras-chave: Price transmission; Industry versus firm specific cost inputs; Differentiated product oligopoly; Focal point collusion; Demand and Price Analysis; Industrial Organization.

Ano: 2002

URL: http://purl.umn.edu/25174

Dhar, Tirtha Pratim; Cotterill, Ronald W..

By specifying a structural model, the present study estimates different indicators of competitiveness of the fluid milk market, namely average and marginal cost, average profits and price-cost margins, and utility levels for the full, and pre and post Compact time period.

Strategic Pricing Behavior under Asset Value Maximization

Palavras-chave: Demand and Price Analysis.

Ano: 2002

URL: http://purl.umn.edu/19872

Wang, Shinn-Shyr; Stiegert, Kyle W.; Dhar, Tirtha Pratim.

In this paper, we develop and estimate a model of strategic firm behavior under financial market uncertainty. The model employs an objective function derived from the capital asset pricing model (CAPM), which draws theoretical linkages between product market uncertainty and financial market returns. An interesting feature of the model is that profit maximization enters as a nested component of the general market value maximization (MVM) model. The model is tested using 4-week interval retail scanner data for margarine and butter from 1998-2002. The traditional profit maximization model is rejected in favor of the proposed MVM structure. Counterfactual simulations point toward significant biases in estimated Lerner indexes when capital market dimensions are...