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Italian Extra-Virgin Olive Oil: Impact on Demand on Being Market Leaders, Private Labels or Small Producers

Antonio Stasi (), Francesco Diotallevi (), Andrea Marchini () and Gianluca Nardone ()
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Antonio Stasi: Department of Sciences of Agriculture, Food and Environment - University of Foggia, ITALY
Francesco Diotallevi: Departmentof Agricultural, Foods and Environmental Sciences - University of Perugia, ITALY
Gianluca Nardone: Department of Sciences of Agriculture, Food and Environment - University of Foggia, ITALY

Review of Economics & Finance, 2018, vol. 13, 39-54

Abstract: This paper proposes a quantitative analysis of extra-virgin olive oil¡¯s market designed to study the intra-sector competition and to analyze the profitability of pricing strategies for different types of companies: small producers, large manufacturers and Private Labels. The analysis focuses on trade within the modern grocery sector, which represents the first distribution channel of extra-virgin olive oils at the national level. The study refers to the theory of industrial organization and, through the demand estimation, measures the price-cost margins. The most important results relate to the concerns of the smaller producers¡¯ respect to Private Labels, big and international companies in the event of a further fall of extra-virgin olive oil¡¯s prices. Implications address policy makers to strengthen product differentiation policies coupled to collective branding, and give further support to vertical integration and cooperation.

Keywords: Integration and differentiation policies; Extra-virgin olive oil demand; Pricing strategies; Industrial and distribution strategies (search for similar items in EconPapers)
JEL-codes: C53 D30 L11 L12 (search for similar items in EconPapers)
Date: 2018
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