ajaz_eco_204_2012_2013_chapter_16_Market_Power

017 0025 0022 0025 68 68 68 68 025259 025259 025259

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Unformatted text preview: “simple” demand model for the diet variety of brand X sold in seven stores of a supermarket over 52 weeks is6: In fact, we can derive another demand model through a multiple regression analysis. To see how, take a look again at the “snapshot” of the supermarket scanner data set we saw earlier: STORE Hval_150 WEEK oz_X oz_Y Price_X Price_Y MC_X MC_Y 62 0.09001 101 13,032 2,088 0.025 0.028 0.021 0.022 62 62 62 … 0.09001 0.09001 0.09001 … 102 103 104 … 3,384 2,088 35,064 …. 3,960 19,296 576 … 0.028 0.030 0.021 … 0.030 0.028 0.030 … 0.023 0.025 0.017 … 0.025 0.022 0.025 … … 68 68 68 68 … 0.25259 0.25259 0.25259 0.25259 … 149 150 151 152 …. 2,160 2,376 3,168 2,880 … 4,608 3,816 2,304 432 … 0.030 0.030 0.028 0.030 … 0.030 0.028 0.030 0.039 … 0.025 0.025 0.023 0.025 … 0.025 0.022 0.025 0.031 Now, suppose we want to estimate this regression demand model for the diet variety of brand X, which takes account of the price of brand Y impacting sales of brand X: (, ) As before, we must first “guess” t...
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This document was uploaded on 01/19/2014.

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