In this paper, we develop and estimate a model of strategic firm behavior under financial market uncertainty. The model employs an objective function derived from the capital asset pricing model (CAPM), which draws theoretical linkages between product market uncertainty and financial market...

Strategic trade theory shows that government intervention in markets with small numbers of traders can boost the welfare of a country relative to free trade. This survey critically assesses the empirical evidence regarding this possibility. One finding is that while many international food and...

In this paper, a two-period game is constructed, where duopoly firms choose advertising strategies in the first period and compete in price or quantity in the second period by maximizing the value of firm equity. Using certainty equivalence, we demonstrate the impacts of uncertainty and modes of...

In this paper, we propose a novel approach to estimating the effect of advertising on market performance that relies on the revealed preferences of firms participating in generic advertising programs. Generic advertising campaigns provide a unique window to observe advertising effects on market...

In this article, we estimate a Green and Porter (GP 1984) trigger pricing model to analyze weekly marketing margin data for the U.S. beef packing industry from 1992-2000. Oligopsonists are hypothesized to follow a discontinuous pricing strategy in equilibrium, and we focus on shocks in the...

This paper presents research on the merger of Copps and Kohl's supermarkets in the city of Madison, Wisconsin. A distinct feature of our data, collected from MarchSeptember of 2003 and 2005, is that it allowed us to assemble price and promotion information for all major competitors in Madison's...

The purpose of the research presented in this study is to examine the relationship of price dispersion to search costs, store choice, and market power in the food-retailing sector. The study used consumer level demographic information and brand level fluid milk consumption data from 33 U.S....

We investigate pricing and demand issues for four fresh potato categories (russet, red, white, and minor colored), organic fresh potatoes, and two processed potato categories (frozen/refrigerated and dehydrated) using a nonlinear generalized almost ideal demand system (GAIDS) that is closed...