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Food Product Proliferation: A Market Structure Analysis
Author(s) -
Connor John M.
Publication year - 1981
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241203
Subject(s) - product (mathematics) , product differentiation , oligopoly , market structure , industrial organization , food industry , consumer demand , product proliferation , business , food products , economics , microeconomics , marketing , new product development , commerce , food science , mathematics , chemistry , geometry , product management , cournot competition
The frequent introduction of avowedly novel products is a common marketing strategy of leading food manufacturers. Over half of all new packaged consumer goods are foods or beverages, yet little is known about the amounts, patterns, and causes of product proliferation. Alternative definitions and analytical models of product proliferation are reviewed, focusing on those derived from Hotelling spatial‐equilibrium theory. A simple regression model is used to test the relationship of market structure to the number of new food products introduced. The results verify that food product proliferation is a mode of industry conduct arising from markets characterized by differentiated oligopoly.