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Product differentiation and brand competition in the Italian breakfast cereal market: a distance metric approach

Paolo Sckokai () and Alessandro Varacca

No 124102, 2012 First Congress, June 4-5, 2012, Trento, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: This article employs a nation-wide sample of supermarket scanner data to study product and brand competition in the Italian breakfast cereal market. An Almost Ideal Demand System (AIDS) modelled to include Distance Metrics (DMs) and consistent with the methodology proposed by Pinske, Slade and Brett (2002), is estimated to study demand responses, substitution patterns, own-price and cross-price elasticities. Estimation results indicate a certain level of brand loyalty and opposite attitudes towards product type. Elasticities point out the presence of patterns of substitution within products sharing the same brand and similar nutritional characteristics.

Keywords: Industrial; Organization (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com and nep-mkt
Date: 2012
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