How firms compete when they set identical prices: Nonprice strategies in the Indian biscuit industry

IF 1.2 4区 管理学 Q3 ECONOMICS
Gianluca Antonecchia, Ajay Bhaskarabhatla
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引用次数: 0

Abstract

How do firms compete when all firms in an industry set identical prices? Using Nielsen data on India's biscuit manufacturers, we document productivity-based competition on nonprice strategies under industry-wide uniform pricing. Products with one standard deviation higher quantity-based productivity contain, on average, 13% more quantity per pack for the same price. Productivity also positively correlates with promotions on pack size, availability, and variety. A higher price (per pack size) sensitivity in rural markets combined with industry-wide uniform pricing imposes a greater burden on rural consumers. Additional analyses show that firms can reduce this burden by selling different pack sizes in urban and rural areas.

Abstract Image

企业在设定相同价格时如何竞争:印度饼干行业的非价格策略
当一个行业的所有公司都制定相同的价格时,公司如何竞争?利用尼尔森关于印度饼干制造商的数据,我们记录了在全行业统一定价下,基于非价格战略的生产力竞争。基于数量的生产率高出一个标准偏差的产品,在相同价格下,每包的数量平均多出13%。生产力还与包装大小、可用性和多样性方面的促销活动呈正相关。农村市场对价格(每包尺寸)的敏感性较高,加上全行业统一定价,给农村消费者带来了更大的负担。其他分析表明,企业可以通过在城市和农村地区销售不同包装尺寸的产品来减轻这种负担。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
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