Methodologies for ex ante projections of adoption rates for agbiotech products: Lessons learned from rBSTLesser, W.; Bernard, John; Billah, Kaafee
doi: 10.1002/(SICI)1520-6297(199921)15:2<149::AID-AGR1>3.0.CO;2-Tpmid: N/A
Pre‐ and post‐release adoption studies for rBST are evaluated for insights into improving ex ante projection methodologies. The conclusion is drawn that user surveys can provide reasonable projections, but the following factors require consideration. The sigmoid curve fits the data well, but the standard experiential learning justification needs reconsideration. Attitudinal variables can enhance the discrimination among users and nonusers, but useful attitudinal questions are not well developed at this point. Rents are a major determinant of use, but projecting rents and shares a priori is a difficult task. Management requirements are a significant factor in use, so that proxies for management quality need improvement. And finally, anti‐biotech attitudes can be most effective if products are labeled so that labeling becomes a key element in forecasting use. (EconLit cites: Q160, Q130) © 1999 John Wiley & Sons, Inc.
Competitiveness in the European dairy industriesDrescher, Klaus; Maurer, Oswin
doi: 10.1002/(SICI)1520-6297(199921)15:2<163::AID-AGR2>3.0.CO;2-5pmid: N/A
International competitiveness has gained high importance for national food sectors in European countries, particularly initiated by the completion of the European Common Market, the rapid expansion of international business activities of private companies, and the accelerated concentration of food industries. Due to increasing interest in the competitive situation of these industries, the paper investigates the international competitiveness of European dairy sectors. After a description of important structural features in the milk production, milk processing and food retailing sectors in European countries and the discussion of different approaches to measure international competitiveness, the analysis is carried out at the meso‐economic level by using “Revealed Comparative Advantage Indicators” to determine the competitive position of the German dairy industry. In comparison with other EU countries, the German dairy sector seems to have international competitive advantages in fresh, dried, and evaporated milk products. The results obtained verify the predominantly qualitative results found in the literature on the international competitiveness of this sector. (EconLit cite: L190) © 1999 John Wiley & Sons, Inc.
An empirical analysis of state agricultural product promotions: A case study on Arizona GrownPatterson, Paul M.; Olofsson, Hans; Richards, Timothy J.; Sass, Sharon
doi: 10.1002/(SICI)1520-6297(199921)15:2<179::AID-AGR3>3.0.CO;2-Kpmid: N/A
State commodity promotions, which promote food and agricultural products produced within a state's borders, are becoming widespread. Even though they are funded through tax revenues, there is little analysis on their effects. This study evaluates consumer awareness of Arizona's program and their preferences for Arizona products. Also, the effects of the program on product sales are analyzed. It was found that consumers were largely unaware of Arizona's program. However, most indicated that they would prefer Arizona products over others. The promotion was found to have little to no effect on product sales and only a modest direct effect on consumer preferences. (EconLit cites: Q180, M300, H170) © 1999 John Wiley & Sons, Inc.
Jawboning cereal: The campaign to lower cereal pricesCotterill, Ronald W.
doi: 10.1002/(SICI)1520-6297(199921)15:2<197::AID-AGR4>3.0.CO;2-Lpmid: N/A
This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid‐1990s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust efforts to promote competition. The RTE cereal industry is now undergoing major structural changes that are on balance pro‐competitive. (EconLit cites: L100, L410, L660) © 1999 John Wiley & Sons, Inc.
Consumers in a box: A consumer report on cerealGejdenson, Samuel; Schumer, Charles
doi: 10.1002/(SICI)1520-6297(199921)15:2<207::AID-AGR5>3.0.CO;2-Opmid: N/A
A report was issued on March 7, 1995 which found that cereal industry prices have accelerated faster than other foods to high noncompetitive levels. The leading companies' differentiation strategy has constrained the growth of economical private label cereals. Furthermore, reliance on inefficient coupons and promotions do not provide real value to the vast majority of American consumers. We conclude that in a competitive cereal industry, one or more manufacturers would break from the pack, cease expensive product proliferation, and reduce prices. Price competitive companies could continue to make healthy profits by reducing excessive advertising and eliminating inefficient promotions, which total hundreds of millions of dollars each year. (EconLit cites: L100, L410, L660) © 1999 John Wiley & Sons, Inc.
Statement on the breakfast cereals industryKahn, Alfred E.
doi: 10.1002/(SICI)1520-6297(199921)15:2<223::AID-AGR7>3.0.CO;2-Spmid: N/A
This summary of my recommendations as advisor to the US District Court in an antitrust proceeding involving the acquisition by Post of Nabisco Cereals is based almost entirely on the evidence in that case. There is ample basis for dissatisfaction with the performance of the industry—especially with its comparative absence of everyday price competition, except where private brands bulk large. There is no reason to believe, however, that the merger at issue would weaken price competition or that if Nabisco were sold to some other entity it would be any more willing to dilute the value of its Shredded Wheat brand by selling product for private labeling. On the other hand, the merger would probably make the combined entity more effective in the ways in which the industry typically competes—including heavy distribution of coupons and specials, which are undeniably a form of price competition. (EconLit cites: L100, L410, L660) © 1999 John Wiley & Sons, Inc.
High cereal prices and the prospects for relief by expansion of private label and antitrust enforcementCotterill, Ronald W.
doi: 10.1002/(SICI)1520-6297(199921)15:2<229::AID-AGR8>3.0.CO;2-7pmid: N/A
This article responds to key points in the GMA Fact Sheet Analysis of cereal industry conduct and performance. It also explains the organization of the industry using research by Wall Street analysts that document high concentration, barriers to entry, and noncompetitive pricing games. The result is high price cost margins and high prices. The judge's decision in State of New York v. P. Morris Kraft General Foods et al. is critiqued. She relies upon a broad definition of competition that compromises the role of price in achieving allocative efficiency in markets. The new application of the antitrust laws to unilateral market power is explained. Finally the prospects for price relief through expansion of private label cereals, although complex, are reasonably good. (EconLit cites: L100, L410, L660) © 1999 John Wiley & Sons, Inc.
Consumers still in a box: The high price of breakfast cerealGejdenson, Samuel; Schumer, Charles
doi: 10.1002/(SICI)1520-6297(199921)15:2<261::AID-AGR10>3.0.CO;2-Bpmid: N/A
This report examines the conduct of the cereal industry since the advent of our public campaign for lower cereal prices one year ago, on March 5, 1995. Announced cereal price increases slowed for the first time in a decade. But the fact that the major cereal companies sold 145 million fewer boxes of cereal in 1995 indicates that consumers still believe prices continue to be too high. It remains to be seen whether or not the leading companies will move prices more in line with the costs of production due to competition from private label and consumer dissatisfaction. (EconLit cites: L100, L410, L660) © 1999 John Wiley & Sons, Inc.