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

Seong-Cheon Seo and Oral Capps
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Seong-Cheon Seo: Department of Agricultural Economics at Texas A & M University, Postal: Department of Agricultural Economics at Texas A & M University

Agribusiness, 1997, vol. 13, issue 6, 659-672

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.

Date: 1997
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Persistent link: https://EconPapers.repec.org/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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