A BLP demand estimation for an Argentinian food industry : heterogeneity of preferences and welfare impact of changes in market structure
Date
2016-07
Authors
González, Julia
relationships.isContributorOfPublication
Brambilla, Irene
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
This paper analyzes the demand of frozen fried potatoes in an important city of Argentina, Mar del Plata, and the effect of changes in market structure on consumer welfare. We find that high income individuals are more concerned about health and nutrition, and that younger and lower-income consumers are more price sensitive. The results suggest that consumer surplus would decrease with a merger between the two smaller firms of the market, and would increase if the market turned into a single-product firms industry. The influence of these counterfactual changes would be greater for wealthier and older individuals. This article contributes to the analysis of a food market which is rapidly growing in developing countries and is starting to play a more relevant role in consumers’ diet.
Description
Fil: González, Julia. Universidad de San Andrés. Departamento de Economía; Argentina.
Keywords
Frozen vegetables industry -- Argentina -- Mar del Plata -- Econometric models. , Food industry and trade -- Argentina -- Mar del Plata -- Econometric models. , Consumer behavior -- Argentina -- Mar del Plata -- Econometric models. , Verduras congeladas -- Industria -- Argentina -- Mar del Plata -- Modelos econométricos. , Alimentos -- Industria y comercio -- Argentina -- Mar del Plata -- Modelos econométricos. , Conducta del consumidor -- Argentina -- Mar del Plata -- Modelos econométricos.