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__ $$nSubmitted by Abigail  Porter  (porte542@umn.edu) on 2015-04-13T18:31:14Z
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  Previous issue date: 2006-02
000201531 913__ $$aLicense granted by Abigail  Porter  (porte542@umn.edu) on 2015-04-13T18:26:08Z (GMT):

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000201531 980__ $$a1803
000201531 982__ $$gUniversity of Wisconsin>Department of Agricultural and Applied Economics>Food System Research Group>Working Papers