IS SOY MILK? THE ECONOMICS OF THE SOY MILK MARKET

Abstract

This study uses revealed preferences of consumers to study the consumer benefits from soy milk. The study specifies and estimates structural demand and reduced form models of competition for different milk types using US supermarket scanner data. The introduction of soy milk is used to estimate consumer benefits and valuations. We decompose benefits into two components, competitive and variety effects. Results show relatively small consumer benefits from soy milk.Demand Systems, Q-AIDS, Milk markets, Biotechnology, Soy milk, Food Labeling, Demand and Price Analysis, Q130, C300, D120, D400,