@article{Wang:201531,
      recid = {201531},
      author = {Wang, Shinn-Shyr and Stiegert, Kyle W. and Dhar, Tirtha  P.},
      title = {Strategic Pricing Behavior Under Asset Value Maximization},
      address = {2006-02},
      number = {1803-2016-142585},
      series = {FSWP},
      pages = {35},
      year = {2006},
      abstract = {This article investigates a comprehensive assessment of  firm strategic behavior under financial
market uncertainty.  A general theoretical model of market value maximization  (MVM) is
constructed using a traditional capital asset  pricing format. The model built on the nonlinear
Almost  Ideal Demand Systems (AIDS) and structural first-order  conditions is developed. By full
information maximum  likelihood (FIML) estimation, the model evaluates pricing  strategies in the
U.S. margarine and butter retail markets  using 4-week interval scanner data from 1998 to 2002.
The  profit maximization model is rejected in favor of the MVM  structure, which indicates that
financial market  uncertainty plays an important role in the pricing behavior  of this industry. We
estimate the price elasticities of  demand for leading brands and investigate the degree  of
market power in this industry.},
      url = {http://ageconsearch.umn.edu/record/201531},
      doi = {https://doi.org/10.22004/ag.econ.201531},
}