000201531 001__ 201531 000201531 005__ 20250401105557.0 000201531 0247_ $$2doi$$a10.22004/ag.econ.201531 000201531 037__ $$a1803-2016-142585 000201531 041__ $$aeng 000201531 245__ $$aStrategic Pricing Behavior Under Asset Value Maximization 000201531 260__ $$c2006-02 000201531 269__ $$a2006-02 000201531 300__ $$a35 000201531 336__ $$aWorking or Discussion Paper 000201531 490__ $$aFSWP 000201531 490__ $$a2006-02 000201531 520__ $$aThis 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. 000201531 650__ $$aFood Consumption/Nutrition/Food Safety 000201531 650__ $$aResearch and Development/Tech Change/Emerging Technologies 000201531 650__ $$aResearch Methods/Statistical Methods 000201531 700__ $$aWang, Shinn-Shyr 000201531 700__ $$aStiegert, Kyle W. 000201531 700__ $$aDhar, Tirtha P. 000201531 8564_ $$925d394cf-2c63-46b8-a6cc-71f4039ef1c8$$s238286$$uhttps://ageconsearch.umn.edu/record/201531/files/WP2006-02.pdf 000201531 887__ $$ahttp://purl.umn.edu/201531 000201531 909CO $$ooai:ageconsearch.umn.edu:201531$$pGLOBAL_SET 000201531 912__ $$nSubmitted by Abigail Porter (porte542@umn.edu) on 2015-04-13T18:31:14Z No. of bitstreams: 1 WP2006-02.pdf: 238286 bytes, checksum: 11952c698e2d9ac50077be45c0c60f32 (MD5) 000201531 912__ $$nMade available in DSpace on 2015-04-13T18:31:14Z (GMT). No. of bitstreams: 1 WP2006-02.pdf: 238286 bytes, checksum: 11952c698e2d9ac50077be45c0c60f32 (MD5) Previous issue date: 2006-02 000201531 913__ $$aLicense granted by Abigail Porter (porte542@umn.edu) on 2015-04-13T18:26:08Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000201531 980__ $$a1803 000201531 982__ $$gUniversity of Wisconsin>Department of Agricultural and Applied Economics>Food System Research Group>Working Papers