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DEMAND ESTIMATION IN THE PRESENCE OF AN UNOBSERVABLE PRODUCT ATTRIBUTE: THE CASE OF MINT QUALITY AgEcon
Toro-Gonzalez, Daniel; Yan, Jia; Gallardo, Rosa Karina; McCluskey, Jill J..
This article estimates the demand for mint-flavored gum products using grocery store sales data and accounting for consumers’ valuation of quality. Unobserved product attributes, such as flavor quality, are important elements to consider when estimating the demand for gum. The estimation results suggest that gum is an inelastic product. A positive relationship between willingness to pay and unobserved quality was identified, implying that gum industry should be able to command a premium for higher quality mint flavored products.
Tipo: Presentation Palavras-chave: Quality Differentiation; Unobserved Product Attributes; Demand Estimation; Gum; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Industrial Organization.
Ano: 2012 URL: http://purl.umn.edu/123518
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THE SIDEWAYS EFFECT: A TEST FOR CHANGES IN THE DEMAND FOR MERLOT AND PINOT NOIR WINES AgEcon
Cuellar, Steven; Karnowsky, Dan; Acosta, Frederick.
This paper examines the effect of the movie Sideways on US wine consumption. Specifically, we examine the effects of the movie on the consumption of Merlot, which is derided in the movie and the effect on Pinot Noir, which is praised. We examine the trends in consumption before and after the movie and perform statistical tests for structural changes in consumption. We also estimate demand functions for both Merlot and Pinot Noir and test for differences in their demands before and after the movie. Finally, we test for changes in consumption of each varietal by price point.
Tipo: Working or Discussion Paper Palavras-chave: Sideways; Chow Test; Demand Estimation; Demand and Price Analysis.
Ano: 2008 URL: http://purl.umn.edu/44086
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