Estimates of Demand, Price Policy, and the Ratio of Price to Marginal Cost by Brand for Selected Consumer Goods
Using the preceding analysis as a guide, we now examine the pertinent evidence for three established products in moderately concentrated markets (frozen orange juice concentrate, instant coffee, and regular coffee) and one new product (instant mashed potatoes) in order to obtain a detailed picture of demand conditions and price policies by brand. In these markets a few firms account for more than one-third of total sales, and it is believed that consumers are somewhat brand loyal. Hence one may regard each firm as in possession of some monopoly power.
KeywordsMarket Share Price Elasticity Price Policy Cross Price Elasticity Instant Coffee
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