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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 estimated equations that included advertising expenditures as explanatory … variables to evaluate annual U.S. consumption of nonalcoholic beverages for 1974 through 2005. Results suggest that advertising …
Persistent link: https://www.econbiz.de/10005041364
We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising … asymmetric advertising response. Results indicate that a decrease in milk advertising had a more profound impact on milk demand … than an increase did. An increase in milk advertising had no impact on milk demand, but a decrease could have an own-advertising …
Persistent link: https://www.econbiz.de/10005802785
milk and cheese, incorporating advertising expenditures. The model consistently accounts for sample-selection bias …, unobserved household heterogeneity, and temporal correlation. Generic advertising programs for fluid milk and cheese were … aggregate studies, the long-run generic advertising elasticities for cheese were larger than for those of fluid milk …
Persistent link: https://www.econbiz.de/10005805373
This study develops an empirical framework that can be used to estimate quality-adjusted price elasticities from cross-sectional data, which are theoretically consistent and comparable to elasticities from time-series data. The new approach shows the importance of properly adjusting for quality...
Persistent link: https://www.econbiz.de/10005807746
We study consumer preferences for socially-responsible certified coffee based on alternative ways to distribute the price premium of the product. We use Becker, DeGroot, and Marschak (BDM) auctions in an experimental setting to elicit consumer willingness to pay for two socially-responsible...
Persistent link: https://www.econbiz.de/10011068670
Persistent link: https://www.econbiz.de/10010921347
Persistent link: https://www.econbiz.de/10010921547
Kuhn-Tucker approach and its dual have been proposed to the demand system estimation when there are non-negativity bindings. However, empirical researchers have been struggling two decades in applying this method into practice due to: (1) the difficulty in derivation of a coherent econometric...
Persistent link: https://www.econbiz.de/10010921549
In this study, we develop and estimate a censored LA/AIDS model using household-level purchase data. In addition to imposing non-negativitity constraints, we account for the endogeneity of unit value. We address the non-negativity issue using an Amemiya-Tobin approach, which imposes the...
Persistent link: https://www.econbiz.de/10010921594
, incorporating an index of consumer dietary cholesterol concerns and generic advertising efforts by the American Egg Board and the … dietary cholesterol concerns. Simulating the model in a constant elasticity supply framework demonstrated that advertising …
Persistent link: https://www.econbiz.de/10005468784