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Measuring Market Power in the Ready-To-Eat Cereal Industry AgEcon
Nevo, Aviv.
The ready-to-eat cereal industry is characterized by high concentration, high price-cost margins, large advertising to sales ratios, and numerous introductions of new products. Previous researchers have concluded that the ready-to-eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense non-price competition. This paper empirically examines this conclusion. In particular, I estimate price-cost margins, but more importantly I am able empirically to separate these margins into three parts: (1) that which is due to product differentiation; (2) that which is due to multi-product firm pricing; and (3) that due to potential price collusion. The results suggest that given the demand for different brands of cereal,...
Tipo: Working or Discussion Paper Palavras-chave: Discrete choice models; Random coefficients; Product differentiation; Ready-to-eat cereal industry; Market power; Price competition; Agribusiness; Demand and Price Analysis; Industrial Organization.
Ano: 1998 URL: http://purl.umn.edu/25164
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On the Accuracy of Nielsen Homescan Data AgEcon
Einav, Liran; Leibtag, Ephraim S.; Nevo, Aviv.
Researchers use Nielsen Homescan data, which provide detailed food-purchase information from a panel of U.S. households, to address a variety of important research topics. However, some question the credibility of the data since the data are self-recorded and the recording process is time-consuming. Matching purchase records from 2004 Homescan data with data obtained from a large grocery retailer, it is evident that quantities purchased are reported more accurately in Homescan than are prices. Many of the price differences may be driven by the way Nielsen imputes prices: when available, Nielsen uses store-level prices instead of the actual price paid by the household. There are also differences by household type in the tendency to make mistakes that are...
Tipo: Report Palavras-chave: Nielsen; Homescan; Scanner data; Validation study; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Institutional and Behavioral Economics.
Ano: 2008 URL: http://purl.umn.edu/56490
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MEASURING MARKET POWER USING DISCRETE CHOICE MODELS OF DEMAND: AN APPLICATION TO THE READY-TO-EAT CEREAL INDUSTRY AgEcon
Nevo, Aviv.
Tipo: Conference Paper or Presentation Palavras-chave: Market power; Consumer demand; Cereal industry; Demand and Price Analysis.
Ano: 1997 URL: http://purl.umn.edu/25944
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