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Building on earlier work by Cramer, this paper tests for price-advertising interaction effects in the U.S. non-alcoholic beverage market. Full and restricted specifications of the Rotterdam model are tested along with compensated and first difference double-log models using annual time-series...
Persistent link: https://www.econbiz.de/10005536126
The dominant trend in U.S. non-alcoholic consumption over the past two decades has been a steady increase in soft-drink consumption, largely at the expense of milk and coffee and tea consumption. Our analysis suggests that the primary factors affecting this is that the price, advertising, and...
Persistent link: https://www.econbiz.de/10005338784
Using a simple market model and Frisch's duality relation, this report develops propositions about the relationship between advertising and the market demand elasticity that may prove useful in empirical research. In particular, we find that a parallel shift in a linear demand function always...
Persistent link: https://www.econbiz.de/10008569710
County level data for the period 1999-2007 are used to assess the effects of NCLB on student performance in Alabama’s rural schools. Results suggest revisions to the state’s accountability system associated with the Act had a positive effect on 8th grade test scores for language, and for...
Persistent link: https://www.econbiz.de/10010674767
We examine what factors affect the degree of price discrimination for an academic journal by analyzing data on 190 of the 208 economics journals indexed in the 2008 edition of Journal Citation Reports. We find that (i) the library-to-individual price ratio of a for-profit journal is 37% higher...
Persistent link: https://www.econbiz.de/10010857246
As a first effort at modeling nonalcoholic beverage demand in a systemwide framework that includes bottled water, this article examines the impact of advertising on the demand for nonalcoholic beverages in the United States. We employed an AIDS (almost ideal demand system) model of five jointly...
Persistent link: https://www.econbiz.de/10005041364
We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising changes. With the introduction of a smooth transition function, the model features smooth rather than abrupt parameter changes between regimes. We apply the model to nonalcoholic...
Persistent link: https://www.econbiz.de/10005802785
This study distinguishes nonadvertising marketing activities from generic advertising and investigates their separate impacts on the retail demand for fluid milk in New York State. Advertising, having an estimated elasticity (of demand) of 0.038 using panel data, is found to be about five times...
Persistent link: https://www.econbiz.de/10008503217
We utilize the outbreak surveillance data from the Centers for Disease Control and Prevention (CDC) to examine whether consumer demand is impacted by the outbreak of food-borne disease. An additional person sickened due to the ingestion of tainted cheese products at home is found to decrease per...
Persistent link: https://www.econbiz.de/10008508665
Posting tax-inclusive price tags on grocery products can reduce demand through an information effect that corrects consumers who misperceive the actual tax status. We disentangle the information effect from the salience effect developed by Chetty, Looney and Kroft (2009, CLK for short). By...
Persistent link: https://www.econbiz.de/10010624384