Journal article
Hamburger Prices and Spatial Econometrics
Journal of economics & management strategy, Vol.12(4), pp.591-616
11/01/2003
DOI: 10.1111/j.1430-9134.2003.00591.x
Abstract
This paper applies spatial econometrics to hamburger price data to assess the degree of substitutability of products and locations of spatially dispersed franchised chains. First, while intrachain price variation exists, I find that hamburger prices at neighboring outlets of different chains are spatially uncorrelated. I conclude that their products are not close substitutes, which provides an explanation for why price promotions have not raised market share. I do find spatial price correlation, however, among proximate outlets of separate franchisees within the same chain. This finding implies that customers view proximate locations of a chain as substitutes.
Details
- Title: Subtitle
- Hamburger Prices and Spatial Econometrics
- Creators
- Arturs Kalnins
- Resource Type
- Journal article
- Publication Details
- Journal of economics & management strategy, Vol.12(4), pp.591-616
- DOI
- 10.1111/j.1430-9134.2003.00591.x
- ISSN
- 1058-6407
- eISSN
- 1530-9134
- Language
- English
- Date published
- 11/01/2003
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984083204602771
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