QUANTIFYING THE EFFECTS OF NEW PRODUCT DEVELOPMENT: THE CASE OF LOW-FAT GROUND BEEF

Gary W. Brester, Pascale Lhermite, Barry Goodwin () and Melvin C. Hunt

Journal of Agricultural and Resource Economics, 1993, vol. 18, issue 2, 12

Abstract: Low-fat ground beef (LFGB) is a new product designed to be as palatable as beef products that contain significantly higher levels of fat. A hedonic model shows that each unitary increase in the leanness of ground beef products carries a price premium of $.0206/lb. If LFGB garners a 10% share of the ground beef market, the retail price of all ground beef products will increase by $.01/lb. and consumption will increase by 39.75 million lbs. The price of commercial cows will increase by $.56/cwt. Price quantity, and welfare measures are magnified as the market share captured by LFGB increases.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30958

DOI: 10.22004/ag.econ.30958

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