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Firm-specific information, product differentiation, and industry equilibrium AgEcon
Perloff, Jeffrey M.; Salop, Steven.
Where consumers have imperfect information about specific firms’ prices and lack information about the market, firms have informational market power. In general, improving the consumer’s information about each firm’s price will not necessarily lower average market price. We show, however, that certain types of improvements will lower price. Moreover, a reduction in barriers to entry (e.g., capital costs) will lower price-holding information constant. Where a significant number (but not all) consumers have perfect information, single-price equilibria are impossible.
Tipo: Working or Discussion Paper Palavras-chave: Competition; Consumers; Consumers' preferences; Consumer education; Mathematical models; Demand elasticity; Economics; Equilibrium; Marketing; Consumer/Household Economics; Demand and Price Analysis.
Ano: 1985 URL: http://purl.umn.edu/47003
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The short- and long-run effects of the vector grocery store consumer price information program AgEcon
Boynton, Robert D.; Perloff, Jeffrey M..
This paper uses a theory of the way information affects average prices, the price distribution across stores, and the degree of concentration within the retail grocery industry to estimate the effects of Vector Enterprise's consumer information program. Since 1972, Vector has ShOl1n each grocery chain's prices on cable television in many cities. By providing consumers with a relatively easy and inexpensive method of comparing prices across grocery chains, Vector's information program has increased the competitiveness of the retail grocery industry in those cities. The first section of this paper presents a summary of the theoretical model used in this study. The problems of using indexes to provide information about grocery prices are described in the...
Tipo: Working or Discussion Paper Palavras-chave: Consumer education; Grocery trade; Prices; Demand and Price Analysis; Consumer/Household Economics.
Ano: 1982 URL: http://purl.umn.edu/47007
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Economic Assessment of Food Safety Regulations: The New Approach to Meat and Poultry Inspection AgEcon
Crutchfield, Stephen R.; Buzby, Jean C.; Roberts, Tanya; Ollinger, Michael; Lin, Chung-Tung Jordan.
USDA is now requiring all Federally inspected meat and poultry processing and slaughter plants to implement a new system called Hazard Analysis and Critical Control Points (HACCP) to reduce potentially harmful microbial pathogens in the food supply. This report finds that the benefits of the new regulations, which are the medical costs and productivity losses that are prevented when foodborne illnesses are averted, will likely exceed the costs, which include spending by firms on sanitation, temperature control, planning and training, and testing. Other, nonregulatory approaches can also improve food safety, such as providing market incentives for pathogen reduction, irradiation, and education and labeling to promote safe food handling and thorough cooking.
Tipo: Report Palavras-chave: Food safety; Foodborne illness; Microbial pathogens; Meat and poultry inspection; HACCP; Cost of illness; Consumer education; Irradiation; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries.
Ano: 1997 URL: http://purl.umn.edu/34009
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