DEMAND ESTIMATION IN THE PRESENCE OF AN UNOBSERVABLE PRODUCT ATTRIBUTE: THE CASE OF MINT QUALITY

Daniel Toro-Gonzalez, Jia Yan, R. Karina Gallardo () and Jill McCluskey
Authors registered in the RePEc Author Service: Daniel Toro González ()

No 123518, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: This article estimates the demand for mint-flavored gum products using grocery store sales data and accounting for consumers’ valuation of quality. Unobserved product attributes, such as flavor quality, are important elements to consider when estimating the demand for gum. The estimation results suggest that gum is an inelastic product. A positive relationship between willingness to pay and unobserved quality was identified, implying that gum industry should be able to command a premium for higher quality mint flavored products.

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Industrial Organization (search for similar items in EconPapers)
Pages: 30
Date: 2012
New Economics Papers: this item is included in nep-com and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:123518

DOI: 10.22004/ag.econ.123518

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