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Extending The Rotterdam Demand Model To Analyze Market Participation

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  • XIE, JINGHUA
  • MYRLAND, ØYSTEIN

Abstract

The dependent variable in the Rotterdam model is shown to consist of two additive components: the proportionate change in the average product weight consumed by existing buyers and the proportionate change in the share of total consumers who actually purchase the product. Applying the extended model to household data on salmon consumption in France, results suggest prices have a larger effect on attracting new buyers to the product in question than on getting existing buyers to consume more. However, generic advertising was found to affect consumption intensity but have no effect on market participation in the short run.

Suggested Citation

  • Xie, Jinghua & Myrland, Øystein, 2018. "Extending The Rotterdam Demand Model To Analyze Market Participation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(2), pages 212-232, May.
    • Handle: RePEc:cup:jagaec:v:50:y:2018:i:02:p:212-232_00
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    Cited by:

    1. Chen, I-Chun & Du, Xiaodong & Mitchell, Paul D., 2020. "Product and Marketing Strategies to Boost the Liquid Milk Demand: A Hedonic Metric Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304262, Agricultural and Applied Economics Association.
    2. Ignacio Escañuela Romana, 2022. "Estimation of the elasticities of demand for edible oils in Spain, 1999-2019 [Estimación de las elasticidades de la demanda de aceites comestibles en España, 1999-2019]," Working Papers hal-03657372, HAL.

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