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FUNCTIONAL FOODS AS DIFFERENTIATED PRODUCTS AgEcon
Bonanno, Alessandro.
Food products providing health benefits beyond nutrition, or functional foods, draw consumers’ attention and promise growth opportunities for innovator food manufacturers. European functional food manufacturers may be facing future challenges, mainly due to the European Union Regulation (EC) No.1924/2006 regulating food products’ health-claims. However, in spite of the interest shown by academics to understand the acceptance of these products no study exists that analyzes the profitability of functional foods. Using a relatively novel methodology – an adaptation of the LA/AIDS model by means of Pinkse Slade and Brett’s (2002) distance metric (DM) method – this article treats functional foods as differentiated products and provides estimates of demand and...
Tipo: Conference Paper or Presentation Palavras-chave: Functional Foods; Differentiated Products; Distance Metric; Yogurt; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Health Economics and Policy; L15; L25; L66.
Ano: 2010 URL: http://purl.umn.edu/116420
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A Hedonic Metric Approach to Estimating the Demand for Differentiated Products: An Application to Retail Milk Demand AgEcon
Gulseven, Osman; Wohlgenant, Michael K..
This article introduces the Hedonic Metric (HM) approach as an original method to model the demand for differentiated products. Using this approach, initially we create an n-dimensional hedonic space based on the characteristic information available to consumers. Next, we allocate products into this space and estimate the elasticities using distances. What distinguishes our model from traditional demand models such as Almost Ideal Demand System (AIDS) and Rotterdam Model is the way we link elasticities with product characteristics. Moreover, our model significantly reduces the number of parameters to be estimated, thereby making it possible to estimate large number of differentiated products in a single demand system. We applied our model to estimate the...
Tipo: Conference Paper or Presentation Palavras-chave: Hedonic Metrics; Distance Metrics; Rotterdam Model; Almost Ideal Demand System; Differentiated Products; Milk Demand.; Food Security and Poverty; C30; C80; Q11; Q13; Q18.
Ano: 2010 URL: http://purl.umn.edu/91675
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