Scanner Data and the Estimation of Demand Parameters

Approaches to the specification of demand systems and the estimation of demand parameters have expanded considerably during recent years (Blundell, 1988). Available empirical estimates have been based on time-series, cross-section, and time-series of cross-section data on individuals, households and more aggregated units. Studies by Capps and Nayga (1990); Capps (1989); Funk, Meilke, and Huff (1977); and Marion and Walker (1978) have employed scanner/retail sales data, a potentially rich new source of information for estimating demand elasticities. Specifically, Capps, and Funk, Meilke, and Huff have utilized data from scanner/retail sales to estimate retail demand functions for meat products in the United States and Canada, respectively.