Source: UNIV OF CONNECTICUT submitted to
FOOD MARKETING POLICY CENTER FOR RESEARCH
 
PROJECT DIRECTOR: Cotterill, R. W.
 
PERFORMING ORGANIZATION
AGRICULTURAL AND RESOURCE ECONOMICS
UNIV OF CONNECTICUT
STORRS,CT 06269
 
NON TECHNICAL SUMMARY: This research provides information for the guidance of public policies at the state, national, and international level to improve performance of food systems. This project analyzes the impacts of changes in strategies, technologies, consumer behavior, and policies on the economic performance of the food system.
 
OBJECTIVES: To analyze the impacts of changes in strategies, technologies, consumer behavior, and policies on the economic performance of the food system. To provide economic analysis of private and public strategies in order to assess their impact on improvement in food safety and other quality attributes.
 
APPROACH: Develop microeconomic based models of industrial organization, strategic decisions, and policy impacts, conduct empirical research using economic methods.
 
CRIS NUMBER: 0199591 SUBFILE: CRIS
PROJECT NUMBER: CONS2004-06250 SPONSOR AGENCY: NIFA
PROJECT TYPE: SPECIAL GRANT PROJECT STATUS: TERMINATED MULTI-STATE PROJECT NUMBER: (N/A)
START DATE: Sep 1, 2004 TERMINATION DATE: Aug 31, 2007

GRANT PROGRAM: FOOD MARKETING POLICY CENTER, CONNECTICUT
GRANT PROGRAM AREA: Special Research Grant

CLASSIFICATION
Knowledge Area (KA)Subject (S)Science (F)Objective (G)Percent
603501030102.140%
604501030102.140%
712501030104.120%

CLASSIFICATION HEADINGS
KA604 - Marketing and Distribution Practices
KA603 - Market Economics
KA712 - Protect Food from Contamination by Pathogenic Microorganisms, Parasites, and Naturally Occurring Toxins
S5010 - Food
F3010 - Economics
G2.1 - Expand Domestic Market Opportunities
G4.1 - Reduce Incidence of Foodborne Illnesses and Contaminants


RESEARCH EFFORT CATEGORIES
BASIC 20%
APPLIED 60%
DEVELOPMENTAL 20%

KEYWORDS: trade; food safety; market power; efficiency; labels; policy analysis; food marketing; agricultural economics; food economics; economic impact; consumer behavior; strategies; economic analysis; public sector; private sector; food quality; microeconomics; econometric models; industrial organization; decision making; economic policies

PROGRESS: Jan 1, 2006 TO Dec 31, 2006
To analyze the impacts of changes in strategies, technologies, consumer behavior, and policies on the economic performance of the food system. Cotterill's paper on global aspects of antitrust policy enforcement in food retailing reviews research on the measurement of market power in retail industries and policy applications in the United States, the European Union and Australia. Hitsch breaks new ground with a dynamic and optimal product launch and exit model for the breakfast cereal industry. He demonstrates how the launch and exit of a brand depends upon the degree of demand uncertainty surrounding the particular brand. Results show that the value of reducing uncertainty can be large and benefit not only the firm but also society. Tian's dissertation analyzes three separate issues: optimal regulatory policy in a marketing channel, transmission of prices in a marketing channel with differentiated products, and the specification and estimation of a bargaining model between retailers and wholesalers in a branded product industry. Cotterill et al. develop a vertical channel model that incorporates branded and private label pricing and demonstrates that supermarket retailers have buyer power against manufacturer's brands when they market a private label product. The Food Marketing Policy Center's current research in progress includes the doctoral dissertation analyzing the impact of services upon supermarket prices as well as the impact of Wal-Mart entry upon supermarket pricing. We also have two master's theses in progress. One is analyzing strategic pricing and price transmission in the peanut butter industry, and the other is analyzing the impact of Wal-Mart upon a price war in the Dallas fluid milk market. For research on this objective also see the CRIS report from the University of Massachusetts titled, MAS00894 since that research was conducted via subcontract under this Food Marketing Policy Center grant. B. To provide economic analysis of private and public strategies in order to assess their impact on improvement in food safety and other quality attributes. Johnston and Roheim analyzed the trade off between taste and environmental convictions in ecolabeled seafood. For other research on this objective see the Massachusetts CRIS report cited above. Johnston is currently working on a chapter in a book on the ecolabeling of seafood.

IMPACT: 2006-01-01 TO 2006-12-31 All of this research has affected public policy at the local state and national and international level. For example, Cotterill was invited to attend and address the British Competition Commission on methods and strategies for the measurement of market power in the British grocery retailing industry in October 2006. In 2006 the Food Marketing Policy Center website received an average of 2,806 visits per month.

PUBLICATION INFORMATION: 2006-01-01 TO 2006-12-31
Cotterill, R.W. 2006. Antitrust Analysis of Supermarkets: Global Concerns Playing out in Local Markets. The Australian Journal of Agricultural and Resource Economics 50:17-32

PROJECT CONTACT INFORMATION
NAME: Cotterill, R. W.
PHONE: 860-486-2742
FAX: 860-486-2461