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Structural Model of Retail Market Power: The U.S. Milk Industry AgEcon
Hovhannisyan, Vardges; Gould, Brian W..
The objective of our research is to investigate retailer market conduct in the sale of beverage milk using a structural model of consumer behavior and retailer optimality conditions that embrace a range of competitive scenarios. The study is based on an aggregate level analysis of retailer behavior with milk quantity used as a strategic variable. We contribute to the literature by employing a Generalized Quadratic Almost Ideal Demand System (GQAIDS) to model milk demand. Furthermore, we derive the retailer optimality conditions that incorporate the slopes of inverse GQAIDS demand curves for the products under study. Lastly, we apply this generalized structural model to study the retailer behavior in marketing national brand (NB) and private label (PL)...
Tipo: Conference Paper or Presentation Palavras-chave: Demand and Price Analysis; Industrial Organization; GQAIDS demand; Structural model; National brand; Private label milk.
Ano: 2011 URL: http://purl.umn.edu/103590
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