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Evaluating Generic Milk Promotion Effectiveness with an Imperfect Competition Model
Author(s) -
Suzuki Nobuhiro,
Kaiser Harry M.,
Lenz John E.,
Forker Olan D.,
Kobayashi Kohei
Publication year - 1994
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 - 10.2307/1243631
Subject(s) - imperfect competition , promotion (chess) , competition (biology) , economics , simultaneity , microeconomics , imperfect , econometrics , industrial organization , ecology , linguistics , philosophy , physics , classical mechanics , politics , political science , law , biology
A framework is proposed for incorporating the degree of market competition in evaluating milk promotion effectiveness. The imperfect competition model allows simultaneity in price and quantity with an endogenous fluid milk premium. The model's usefulness is demonstrated with Japanese generic milk promotion data. Results show a conventional exogenous‐price or exogenous‐premium model will underestimate returns to milk promotion.