We examine equilibrium responses of a Cournot oligopoly to two typical types of nonparallel demand increases. The results based on a linear demand curve show that in terms of profits, increases in demand that result in a more elastic demand curve are beneficial to every firm, with large firms...

Advertising can rotate the demand curve if it changes the dispersion of consumers' valuations. We provide an elasticity form measure of the advertising-induced demand curve rotation in five demand models and test for its presence in the US nonalcoholic beverage market. The Almost Ideal Demand...

We develop a two-sided model for a farmers’ market where farmers value the number of consumers, and consumers value the number of farmers and the average product quality in the market. Consumer preference over product quality provides an incentive for the farmers’ market to exclude farmers...

The objective of the research reported in this article is to examine both the own and cross effects of US export promotion for US and non-US grains. We focus on two previously neglected dimensions of the cross effects. First, we examine whether a halo effect (i.e. promotion for one US commodity...

Consumers consistently express concern about the risk of new variant Creutzfeldt-Jakob Disease (nvCJD) from eating beef. Given several US cows infected with Bovine Spongiform Encephalopathy (BSE) (mad cow disease) and recent findings that the path of transmission of nvCJD remains unknown, the...

Price promotion and generic advertising are two common strategies to increase consumer demand for food products. Which one is preferred over the other depends largely, on the relative importance of state dependence and heterogeneity in household purchase decision and behaviour on desired...