Search

This research contains an econometric analysis of energy demand in trade and industry which allows for substitution between electricity and other energy carriers when relative prices change. The presence of substitution suggests that taxation can be a means of changing the energy input mix in a more environmental-friendly direction. For eight subsectors of the Danish economy, time series (1966–2011) are modeled by means of partial Cointegrated VARs. Long-run demand relations are identified for all subsectors and robust price elasticities are supported in five cases. The results are used in a small impulse–response experiment which suggests a potential for taxation to induce substitution of electricity for fossil-based energy.

The authors study the emergence of brand-shares and the entry/exit dynamics among competing brands in new repeat-purchase categories. In such new categories, market-shares are strongly affected by retailer distribution-decisions. Because, at the aggregate level, such decisions are spread out over time, the success of a manufacturer in obtaining distribution from adopting retailers may positively depend on its brand's market-share to date. This creates a temporary positive feedback between a brand's market-share and its distribution over the growth-stage of the category. This feedback, along with how manufacturers influence their brand's market-share and distribution, is hypothesized to drive the emergence of the market structure. The authors use a logically consistent model of this feedback to quantify how a brand's coupled market-share and distribution evolve and to help answer several questions about the relative efficiency of influencing share (pull) vs. seeking distribution (push). This model also allows to study changes in the strength of feedback and in the manufacturer's influence on its market-share as the new category moves from its growth it its mature stage. Estimation on data from the U.S. ready-to-drink tea category suggests that positive feedback between market-share and distribution exists and that it is limited to the early growth stage of the category. This makes that the effects of a change in market-share or in distribution on the subsequent dynamics of market-shares depend on the maturity of the category. Whereas early-on in the life-cycle of the category, small changes in market-share or distribution generate long-term larger changes in market-share, later such momentum is absent. In this context, it is discussed how a late entrant fails to capture a sizeable market-share.

The authors study the emergence of brand-shares and the entry/exit dynamics among competing brands in new repeat-purchase categories. In such new categories, market-shares are strongly affected by retailer distribution-decisions. Because, at the aggregate level, such decisions are spread out over time, the success of a manufacturer in obtaining distribution from adopting retailers may positively depend on its brand's market-share to date. This creates a temporary positive feedback between a brand's market-share and its distribution over the growth-stage of the category. This feedback, along with how manufacturers influence their brand's market-share and distribution, is hypothesized to drive the emergence of the market structure. The authors use a logically consistent model of this feedback to quantify how a brand's coupled market-share and distribution evolve and to help answer several questions about the relative efficiency of influencing share (pull) vs. seeking distribution (push). This model also allows to study changes in the strength of feedback and in the manufacturer's influence on its market-share as the new category moves from its growth it its mature stage. Estimation on data from the U.S. ready-to-drink tea category suggests that positive feedback between market-share and distribution exists and that it is limited to the early growth stage of the category. This makes that the effects of a change in market-share or in distribution on the subsequent dynamics of market-shares depend on the maturity of the category. Whereas early-on in the life-cycle of the category, small changes in market-share or distribution generate long-term larger changes in market-share, later such momentum is absent. In this context, it is discussed how a late entrant fails to capture a sizeable market-share.

The authors study the emergence of brand-shares and the entry/exit dynamics among competing brands in new repeat-purchase categories. In such new categories, market-shares are strongly affected by retailer distribution-decisions. Because, at the aggregate level, such decisions are spread out over time, the success of a manufacturer in obtaining distribution from adopting retailers may positively depend on its brand's market-share to date. This creates a temporary positive feedback between a brand's market-share and its distribution over the growth-stage of the category. This feedback, along with how manufacturers influence their brand's market-share and distribution, is hypothesized to drive the emergence of the market structure. The authors use a logically consistent model of this feedback to quantify how a brand's coupled market-share and distribution evolve and to help answer several questions about the relative efficiency of influencing share (pull) vs. seeking distribution (push). This model also allows to study changes in the strength of feedback and in the manufacturer's influence on its market-share as the new category moves from its growth it its mature stage. Estimation on data from the U.S. ready-to-drink tea category suggests that positive feedback between market-share and distribution exists and that it is limited to the early growth stage of the category. This makes that the effects of a change in market-share or in distribution on the subsequent dynamics of market-shares depend on the maturity of the category. Whereas early-on in the life-cycle of the category, small changes in market-share or distribution generate long-term larger changes in market-share, later such momentum is absent. In this context, it is discussed how a late entrant fails to capture a sizeable market-share.