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Preferences, Market Structure, and Welfare Evaluations in the Argentinean FFP Industry: A Case in Buenos Aires Province
Author(s) -
González Julia,
Lacaze M. Victoria
Publication year - 2012
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21299
Subject(s) - econlit , counterfactual thinking , welfare , economics , economic surplus , market structure , consumer welfare , product (mathematics) , agricultural economics , market economy , microeconomics , philosophy , geometry , mathematics , medline , epistemology , political science , law
This study analyzes the demand for frozen fried potatoes in an important city of Argentina, Mar del Plata, and the effect of changes in market structure on consumer welfare. We found that high‐income individuals are more concerned about health and nutrition, and that younger and lower‐income consumers are more price‐sensitive. The results suggest that consumer surplus would decrease with a merger between the two smaller firms in the market, and would increase if the market turned into a single‐product firms industry. The influence of these counterfactual changes would be greater for wealthier and older individuals. This article contributes to the analysis of a food market that is rapidly growing in developing countries and is starting to play a more relevant role in consumers’ diet. [EconLit classifications: L11, D12] © 2012 Wiley Periodicals, Inc.