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Regional variability of price and expenditure elasitcities: The case of spaghetti sauces

Author

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  • Seong-Cheon Seo

    (Department of Agricultural Economics at Texas A & M University)

  • Oral Capps

    (Department of Agricultural Economics, Blocker Building, Texas A & M University, College Station, TX 77843-2124)

Abstract

Using IRI Infoscan data for six brands of spaghetti sauce and employing the Rotterdam model, estimates were obtained for own-price, cross-price, and total expenditure elasticities for 43 market areas of the United States. Variability of own-price, cross-price, and expenditure elasticities across different regions was evident, particularly for the own-price elasticities. Manufacturers may use our results to conduct appropriate pricing and promotion strategies by market and region. © 1997 John Wiley & Sons, Inc.

Suggested Citation

  • Seong-Cheon Seo & Oral Capps, 1997. "Regional variability of price and expenditure elasitcities: The case of spaghetti sauces," Agribusiness, John Wiley & Sons, Ltd., vol. 13(6), pages 659-672.
    • Handle: RePEc:wly:agribz:v:13:y:1997:i:6:p:659-672
    DOI: 10.1002/(SICI)1520-6297(199711/12)13:6<659::AID-AGR10>3.0.CO;2-W
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    References listed on IDEAS

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    1. Cotterill, Ronald W., 1994. "Scanner Data: New Opportunities For Demand And Competitive Strategy Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-15, October.
    2. S. E. Pudney, 1981. "An Empirical Method of Approximating the Separable Structure of Consumer Preferences," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 561-577.
    3. Cotterill, Ronald W., 1994. "Scanner Data: New Opportunities for Demand and Competitive Strategy Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(2), pages 125-139, October.
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    Cited by:

    1. Femenia, Fabienne, 2019. "A Meta-Analysis of the Price and Income Elasticities of Food Demand," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    2. Revoredo-Giha, Cesar & Lamprinopoulou-Kranis, Chrysa & Kupiec-Teahan, Beata & Leat, Philip M.K. & Cacciolatti, Luca, 2009. "Cereal Prices, Bread Consumption and Health in Scotland," Working Papers 61121, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Yun Fong Lim & Yunzeng Wang & Yue Wu, 2015. "Consignment Contracts with Revenue Sharing for a Capacitated Retailer and Multiple Manufacturers," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 527-537, October.
    4. Revoredo-Giha, Cesar & Leat, Philip M.K. & Toma, Luiza & Lamprinopoulou-Kranis, Chrysa & Kupiec-Teahan, Beata & Cacciolatti, Luca, 2009. "Wheat Prices, Bread Consumption and Health in Scotland," Working Papers 109395, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    5. Revoredo-Giha, Cesar & Lamprinopoulou-Kranis, Chrysa & Toma, Luiza & Leat, Philip M.K. & Kupiec-Teahan, Beata & Cacciolatti, Luca, 2009. "Bread Prices, Consumption and Nutrition Implications for Scotland: A Regional Analysis Using Supermarket Scanner Data," Working Papers 109393, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.

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