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Jawboning Cereal: The Campaign to Lower Cereal Prices

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  • Cotterill, Ronald

Abstract

This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid 1990’s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust efforts to promote competition. The RTE cereal industry is now undergoing major structural changes that are on balance pro competitive.

Suggested Citation

  • Cotterill, Ronald, 1998. "Jawboning Cereal: The Campaign to Lower Cereal Prices," Issue Papers 161559, University of Connecticut, Food Marketing Policy Center.
    • Handle: RePEc:ags:ucofmi:161559
    DOI: 10.22004/ag.econ.161559
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    References listed on IDEAS

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    1. Cotterill, Ronald & Franklin, Andrew & Haller, Lawrence, 1994. "Harvesting and Tacit Collusion in the Breakfast Cereal Industry: A Case Study of Nabisco Shredded Wheat and Post Grape Nuts," Issue Papers 160504, University of Connecticut, Food Marketing Policy Center.
    2. Ronald W. Cotterill, 1999. "High cereal prices and the prospects for relief by expansion of private label and antitrust enforcement," Agribusiness, John Wiley & Sons, Ltd., vol. 15(2), pages 229-245.
    3. Ronald W. Cotterill & Lawrence E. Haller, 1997. "An Econometric Analysis of the Demand for RTE Cereal: Product Market Definition and Unilateral Market Power Effects," Food Marketing Policy Center Research Reports 035, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Pauline M. Ippolito & Alan D. Mathios, 1990. "Information, Advertising and Health Choices: A Study of the Cereal Market," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 459-480, Autumn.
    5. Ronald W. Cotterill & Andrew W. Franklin & Lawrence E. Haller, 1994. "Harvesting and Tacit Collusion in the Breakfast Cereal Industry: A Case Study of Nabisco Shredded Wheat and Post Grape Nuts," Issue Papers 06, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    6. Richard Schmalensee, 1978. "Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 305-327, Autumn.
    7. John M. Connor, 1981. "Food Product Proliferation: A Market Structure Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 607-617.
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    Keywords

    Agricultural and Food Policy; Marketing;

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