Modelling asymmetric consumer demand response: Evidence from scanner data

Joaquin Vespignani

MPRA Paper from University Library of Munich, Germany

Abstract: We used scanner data to test whether two competitive commodities respond symmetrically by volume to price changes. Our results indicate that consumers of the most expensive good (Coca-Cola) respond quite symmetrically when prices go either up or down. In contrast, consumers of the less expensive good (Pepsi-Cola) respond quite asymmetrically. We also introduce the substitution effect in ARDL asymmetric modelling as scanner data permits, showing that most previous asymmetric models using this technique experience omitted variables since this parameter is excluded.

Keywords: Scanner data; Asymmetric consumer demand; Autoregressive (search for similar items in EconPapers)
JEL-codes: C1 C10 D0 D00 M3 (search for similar items in EconPapers)
Date: 2012-01-01
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:55601

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