We simulate the price effects of several hypothetical mergers in the shelf-stable bottled juice industry. In doing so, we highlight the effects of consumer stockpiling on demand elasticity estimates and subsequent merger simulations. This task is complicated by a large number of choice alternatives within the bottled juice category. To address this challenge we employ a demand model based on the Distance Metric (DM) approach of Pinkse et al. (Econometrica 70:1111–1153, 2002). We find that merger simulations that do not account for consumer stockpiling behavior underestimate the permanent price changes that are likely to occur due to a merger.
Review of Industrial Organization – Springer Journals
Published: Jul 5, 2009
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera