Demand for Coffee: The Role of Prices, Preferences and Market Power

Dick Durevall ()
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Dick Durevall: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

No 162, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: The purpose of this paper is to evaluate the role of prices in determining demand for roasted coffee in Sweden. This is of interest because many believe that consumer prices are high relative to green coffee-bean prices, and that lower consumer prices would increase demand for coffee beans. Coffee demand is estimated on data for the period 1968-2002. In the long run, changing preferences appear to determine demand for roasted coffee, and a reduction in consumer prices would only have a temporary impact on consumption. Hence a permanent decrease in consumer prices would only increase exports of coffee beans to Sweden for a couple of years.

Keywords: Coffee exports; Coffee Prices; Market Power; Multinationals; Preferences; Sweden (search for similar items in EconPapers)
JEL-codes: F14 F23 L13 L66 L81 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2005-02-28
New Economics Papers: this item is included in nep-bec and nep-com
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Citations: View citations in EconPapers (4)

Published as Durevall, Dick, 'Demand for Coffee: The Role of Prices, Preferences and Market Power' in Food Policy , 2007, pages 566-584.

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