Brand-Supermarket Demand Estimation for Fluid Milk in Chicago
Standard logit and nested logit models of brand-supermarket demand estimation are applied to the research of fluid milk industry in Chicago in this paper, under the assumption that the retail prices are endogenous.This assumption is widely accepted because unobservable product attributes, such as manufacturing merchandising, may affect consumer utility as well as price setting by retailers.To empirically justify the assumption and investigate the price elasticity of demand/market share, we use the monthly retail scanner data of two major grocery store chains and other stores in Chicago area from 1996 to 2000, and apply the standard and nested logit models on the panel data.The results support the assumption and show that the parameter σ, which measures the within-group correlation of utility level, is not statistically significant.Therefore we should use the standard logit model instead of the nested logit model in this case.In the standard logit model, the price elasticity of market share at mean is-1.86.
Nested Logit Model Price Elasticity Fluid Milk Market GMM Estimation
CHEN Lei BAO Wenqiang
School of Business,Jianghan University,Wuhan,Hubei 430056,PR China Department of Agricultural Economics,University of Connecticut,Storrs,CT 06269,USA
国际会议
山东 日照
英文
68-73
2015-08-17（万方平台首次上网日期，不代表论文的发表时间）