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Market Delineation and Demand Structure
Author(s) -
Asche Frank,
Steen Frode,
Salvanes Kjell G.
Publication year - 1997
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 - 10.2307/1243949
Subject(s) - cointegration , set (abstract data type) , quality (philosophy) , econometrics , european union , economics , on demand , data set , estimation , computer science , international trade , commerce , philosophy , management , epistemology , programming language , artificial intelligence
This paper addresses the relationship between the cointegration approach to market delineation and the more traditional approach of analyzing the demand structure among different products in terms of degree of substitutability. Cointegration tests for market delineation and estimation of a dynamic system of demand equations are undertaken utilizing the same data set. The data set consists of three high‐quality seafood products in the European Union. The results are encouraging as the results from the two approaches are not only compatible, but are also complementary in the sense that they provide more information together than they do separately.