Download or read book Quality Differentiation and Heterogeneous Consumer Preferences written by Daniel Toro González and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three independent but related papers. All of them are devoted to estimate demand functions in presence of unobservable product attributes, such as quality, using different identification strategies. The first two exercises are based on a discrete choice model using the product-market approach developed by Berry (1994) with aggregate data information for gum and beer consumption. The third paper uses a control function approach as an identification strategy in order to estimate the choice model using disaggregated (micro level) data on household choices. These exercises reveal the importance of controlling for price endogeneity due to the existence of unobservable product attributes incorporating substantial bias in the coefficients when ignored.

Download or read book Heterogeneous consumer preferences for product quality and uncertainty written by Wolfgang Maennig and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Preferences for Differentiated Food Products written by Vugar Ahmadov and published by . This book was released on 2008 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Discrete Choice Theory of Product Differentiation written by Simon P. Anderson and published by MIT Press. This book was released on 1992 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The discrete choice approach provides an ideal framework for describing the demands for differentiated products and can be used for studying most product differentiation models in the literature. By introducing extra dimensions of product heterogeneity, the framework also provides richer models of firm location and product selection."--BOOK JACKET.

Download or read book Network Competition and Branch Differentiation with Consumer Heterogeneity written by Jean-Claude Thill and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper provides a general framework for the analysis of noncooperative competition between multi-branch networks when consumers have heterogeneous preferences. This framework allows for ill-studied conditions, such as branch loyalty and economies of scope, to be explored in terms of their role in shaping address solutions and firm profits. Geographic and quality differentiation as well as firm profits are shown to be dependent upon the magnitude of the loyalty factor and upon the extend of economies of scope. Real world situations in the retail industry are interpreted in the light of the results of the analysis.

Download or read book Heterogeneous Consumers written by Anna Vyacheslavovna Yurko and published by . This book was released on 2008 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the effect of heterogeneity in consumer incomes on outcomes in vertically differentiated markets. When products are differentiated in quality, the consumer's choice of a particular product is a function of her income. Thus, the distribution of incomes plays an important role in shaping the demand for individual products in vertically differentiated markets. The first two chapters of the dissertation study the demand for passenger cars and trucks in the US. These vehicles are differentiated by quality that depends on vehicle's age. The first chapter studies the relationship between the distribution of consumer incomes and the distribution of vehicle vintages using a dynamic, heterogeneous agents model. The model predicts that higher per capita incomes are associated with younger vehicle stocks, if the vehicle ownership rates are high. If the per capita incomes are low, and so are the endogenous vehicle ownership rates, increases in income may lead to the aging of vehicles, by encouraging entry of lower income consumers into vehicle ownership via purchases of older vehicles. Higher levels of income inequality are associated with older vehicle stocks. The second chapter of the dissertation asks whether some of the observed increases in the average age of vehicles in the US can be attributed to the rise in real consumer incomes and the resulting changes in the composition of demand for different vehicle vintages. The dynamic, non-stationary, heterogeneous agents model, estimated on the aggregate vehicle ownership data for the US over the 1967-2001 period, provides a positive answer to this question. The third chapter of the dissertation studies the effect of inequality in consumer incomes on firms' entry, location, and pricing decisions in a static oligopoly model of vertically differentiated products. This paper computes the Nash equilibrium of a three-stage game similar to Shaked and Sutton (1982), to find that greater inequality in consumer incomes leads to the entry of more firms and results in more intense quality competition among the entrants. The consumption inequality is lower and the aggregate consumer welfare is higher in economies with greater income inequality.

Download or read book Product Quality with Heterogeneous Consumers and Linear Pricing written by Hugh Sibly and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers a linear-pricing monopolist that conducts vertical product differentiation. Previous analyses consider customers who either have unit demand or firms who conduct nonlinear pricing. In this paper, customers' opportunity cost of time generates a demand for quality. Customers differ in either their demand, income or taste for quality. Differences in income and taste for quality are sources of vertical differentiation. The presence of quality distortion and the variety that may exhibit it are dependent on the functional form of the customer types' demand.

Download or read book Emergence of Product Differentiation from Consumer Heterogeneity and Asymmetric Information written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We introduce a fully probabilistic framework of consumer product choice based on quality assessment. It allows us to capture many aspects of marketing such as partial information asymmetry, quality differentiation, and product placement in a supermarket.

Download or read book The Construction of Optimal Stated Choice Experiments written by Deborah J. Street and published by John Wiley & Sons. This book was released on 2007-07-20 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: The most comprehensive and applied discussion of stated choice experiment constructions available The Construction of Optimal Stated Choice Experiments provides an accessible introduction to the construction methods needed to create the best possible designs for use in modeling decision-making. Many aspects of the design of a generic stated choice experiment are independent of its area of application, and until now there has been no single book describing these constructions. This book begins with a brief description of the various areas where stated choice experiments are applicable, including marketing and health economics, transportation, environmental resource economics, and public welfare analysis. The authors focus on recent research results on the construction of optimal and near-optimal choice experiments and conclude with guidelines and insight on how to properly implement these results. Features of the book include: Construction of generic stated choice experiments for the estimation of main effects only, as well as experiments for the estimation of main effects plus two-factor interactions Constructions for choice sets of any size and for attributes with any number of levels A discussion of designs that contain a none option or a common base option Practical techniques for the implementation of the constructions Class-tested material that presents theoretical discussion of optimal design Complete and extensive references to the mathematical and statistical literature for the constructions Exercise sets in most chapters, which reinforce the understanding of the presented material The Construction of Optimal Stated Choice Experiments serves as an invaluable reference guide for applied statisticians and practitioners in the areas of marketing, health economics, transport, and environmental evaluation. It is also ideal as a supplemental text for courses in the design of experiments, decision support systems, and choice models. A companion web site is available for readers to access web-based software that can be used to implement the constructions described in the book.

Download or read book Quality Standards Value Chains and International Development written by Johan Swinnen and published by Cambridge University Press. This book was released on 2015-07-23 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decades, the world has witnessed an unprecedented growth in global value chains, propelled by increasingly demanding quality standards. These trends lead to concerns about the impact of value chains on development and poverty and about the possible protectionist nature of quality standards in rich countries. This book offers the first integrated theoretical analysis of the economic and political factors which determine the level of quality standards, as well as their economic effects along the value chain. Using realistic assumptions motivated by empirical research, the theoretical framework in this book makes it possible to study the efficiency effects as well as the distributional consequences of one of the most striking evolutions affecting global trade and development today.

Download or read book The Oxford Handbook of the Economics of Food Consumption and Policy written by Jayson L. Lusk and published by Oxford Handbooks. This book was released on 2013-08-15 with total page 923 pages. Available in PDF, EPUB and Kindle. Book excerpt: First reference on food consumption and policy.

Download or read book Quantifying Consumer Preferences written by Daniel Slottje and published by Emerald Group Publishing. This book was released on 2009-05-21 with total page 410 pages. Available in PDF, EPUB and Kindle. Book excerpt: Demand studies and understanding consumer behavior remain two of the most important areas of analysis by practicing applied economists and econometricians. This book presents research on the estimation of demand systems and the measurement of consumer preferences.

Download or read book Consumer Preferences and Acceptance of Food Products written by Derek V. Byrne and published by MDPI. This book was released on 2020-12-01 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: The acceptance and preference of the sensory properties of foods are among the most important criteria determining food choice. Sensory perception and our response to food products, and finally food choice itself, are affected by a myriad of intrinsic and extrinsic factors. The pressing question is, how do these factors specifically affect our acceptance and preference for foods, both in and of themselves, and in combination in various contexts, both fundamental and applied? In addition, which factors overall play the largest role in how we perceive and behave towards food in daily life? Finally, how can these factors be utilized to affect our preferences and final acceptance of real food and food products from industrial production and beyond for healthier eating? A closer look at trends in research showcasing the influence that these factors and our senses have on our perception and affective response to food products and our food choices is timely. Thus, in this Special Issue collection “Consumer Preferences and Acceptance of Food Products”, we bring together articles which encompass the wide scope of multidisciplinary research in the space related to the determination of key factors involved linked to fundamental interactions, cross-modal effects in different contexts and eating scenarios, as well as studies that utilize unique study design approaches and methodologies.

Download or read book Hedonic Quality and Social Norms written by Andrea Mantovani and published by . This book was released on 2015 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyse how strategic competition between a green firm and a brown competitor develops when their products are differentiated along two dimensions: hedonic quality and environmental quality. The former dimension refers to the pure (intrinsic) performance of the good, whereas the latter dimension has a positional content: buying green goods satisfies the consumers' desire to be socially worthy citizens. Product variants thus comply at different levels with "green" social norms. Consumer preferences depend on a combination of hedonic quality and compliance with social norms. Assuming that the high hedonic quality variant complies less with these norms than the low hedonic quality variant, we characterize different equilibrium configurations which appear as a result of both the intensity of such norms and the willingness to pay for the hedonic quality. Afterwards, we discuss the policy implications of our analysis.

Download or read book Essays on Vertical Product Differentiation written by Yong-Hwan Noh and published by . This book was released on 2005 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores models of heterogeneous product markets that rely on the "vertical product differentiation" formulation. The demand structure applied here is the covered-market configuration under the vertical product differentiation. With this specification, product market equilibria of the monopoly and duopoly market are derived. In particular, parameter restrictions on the degree of relative consumer heterogeneity associated with the covered-market setting are identified and used to interpret analytical results. Based on the specified demand structure, I revisit two industrial organization topics from the perspectives of vertical product differentiation. The first essay analyzes the entry of a new product into a vertically differentiated market where an entrant and an incumbent compete in prices. Many models on strategic entry deterrence deal with "limit quantities" as the established firm's strategic tool to deter or accommodate entry. Here, however, the entry-deterrence strategies of the incumbent firm rely on "limit qualities". With a sequential choice of quality, quality-dependent marginal production cost, and a fixed entry cost, I relate the entry-quality decision and the entry-deterrence strategies to the level of an entry cost and the degree of consumer heterogeneity. In particular, the incumbent influences the quality choice of the entrant by choosing its quality level before the entrant. This allows the incumbent to "limit" the entrant's entry decision and quality levels. Quality-dependent marginal production costs in the model entail the possibility of inferior-quality entry as well as the incumbent's aggressive entry-deterrence strategies by increasing its quality level towards potential entry. Welfare evaluation confirms that social welfare is not necessarily improved when entry is encouraged rather than deterred. The second essay is motivated by some specific economic questions that have arisen with the introduction of 'genetically modified' (GM) agricultural products. A duopoly market-entry model associated with the vertical product differentiation is developed to show how the existence of segregation costs biases the firm's quality choice behavior. Thus, the key factor of the model is the cost of segregation activities that are necessary to distinguish GM products from non-GM products. With an increasing and convex cost of quality, the model predicts that the entrant firm has an increased incentive to enter the market with a low-quality good to reduce production costs if segregation costs are sufficiently high. When consumers are homogeneous enough, however, entry may occur with the high-quality good.

Download or read book Strategic Information Disclosure written by V. Joseph Hotz and published by . This book was released on 2006 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the incentives for firms to voluntarily disclose otherwise private information about quality attributes of differentiated products. In particular, we focus on the case of differentiated products with multiple attributes and consumers that are heterogeneous in their preferences over these attributes. We show that there exist certain configurations of consumer preferences under which a firm producing a high-quality product, even with zero costs of disclosure, may choose not to reveal the quality of its product. This failure of firms to voluntarily disclose the quality of their products will arise when providing consumers with more information results in more elastic demands for these products, which, in turn, triggers more intensive price competition and leads to lower prices and profits for all firms. As a result, the equilibrium in which disclosure is voluntary may diverge from that in which disclosure is mandatory.

Download or read book Global Food Trade and Consumer Demand for Quality written by Barry Krissoff and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consumers have always been concerned about the quality, and particularly the safety, of the foods they eat. In recent years this concern has taken on additional prominence. Consumer focus on food safety has been sharpened by reports about new risks, such as that posed by "mad cow" disease, and about more familiar sources of risk, such as food borne pathogens, pesticides, and hormones. At the same time, some consumers are in creasingly interested in knowing more about how their food is produced and in selecting products based on production practices. Some of the questions consumers are asking in clude whether food is produced with the use of modern biotechnology, whether it is or ganically produced, how animals are treated in meat and egg production systems, and whether food is produced using traditional methods. Recent trends also show increased consumer demand for a variety of food products that are fresh, tasty, and available on a year-round basis. This has fostered increased global trade in food. For example, consumers in temperate climates such as North America are able to buy raspberries throughout the year, and Europeans can enjoy South American coffee. Trade in processed food products is actually increasing more rapidly than trade in agricultural commodities, further addressing the demand for variety among consumers.