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An Econometric Analysis of Brand Level Strategic Pricing Between Coca Cola and Pepsi Inc. AgEcon
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.
Tipo: Working or Discussion Paper 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
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MARKETING ORDER SUSPENSIONS AND FRESH LEMON RETAIL-FOB MARGINS AgEcon
Richards, Timothy J.; Kagan, Albert; Mischen, Pamela; Adu-Asamoah, Richard.
In August 1994, the Secretary of Agriculture announced the termination of the marketing order and the association flow-to-market, or prorate, controls for fresh California and Arizona (CA/AZ) lemons. Lemon growers and handlers have expressed concern over the impact of this decision on retail-FOB margins. This study presents an econometric model of fresh lemon marketing margins that tests for the presence of buyer and seller market power during previous periods of marketing order suspension. The results show that buyer and, to a lesser extent, seller market power cause retail-FOB margins to widen during periods of prorate suspension.
Tipo: Journal Article Palavras-chave: Conjectural variations; Lemons; Marketing order; Monopsony power; Retail-FOB margins; Marketing.
Ano: 1996 URL: http://purl.umn.edu/15114
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