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How Much Do Consumers Benefit from New Brand Introductions? The Case of Potato Chips 31
Arnade, Carlos Anthony; Gopinath, Munisamy; Pick, Daniel H..
This study identifies consumer welfare from new brand introductions in the potato chip market. Price and variety effects of new brand introduction are measured by estimating a demand system underlying an expenditure function. Variety effects are positive in most cities, while price effects are generally negative when consumers exhibit some variety preference. Variety effects dominate price effects in most cities; an opposite effect observed in some cities may indicate high entry barriers or joint brand- and price-based marketing strategies. Results indicate that consumers and producers gain from product innovations, but substantial regional variation exists in the distributional effects of new brand introduction.
Tipo: Journal Article Palavras-chave: City-demand system; Compensating variation; Consumer welfare; New brands; Virtual prices; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety.
Ano: 2011 URL: http://purl.umn.edu/105529
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Estimation of the Effects of New Brands on Incumbents' Profits and Consumer Welfare: The U.S. Processed Cheese Market Case 31
Kim, Donghun.
We estimate the effects of new brands on market competition and consumer welfare in the U.S. processed cheese market. We find that an observed increase in consumer welfare was attributable mainly to an increase in the number of brands in the sample market, while the price effect, which measures welfare change caused by adding new brands to existing brands, decreased welfare as the prices of the existing brands increased in a large portion of sample markets. The price increase was most pronounced among the introducer’s existing brands.
Tipo: Working or Discussion Paper Palavras-chave: Consumer welfare; Incumbents; New brands; Random coefficient model; Agribusiness; Consumer/Household Economics; Industrial Organization.
Ano: 2004 URL: http://purl.umn.edu/25192
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