DEMAND AND COMPETITION AMONG SUPPLY SOURCES: THE INDONESIAN FRUIT IMPORT MARKET
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Indonesia is a rapidly growing and competitive market for U.S. fruit. A restricted, source-differentiated, almost ideal demand system is estimated for apples, oranges, grapes, and other fruit in Indonesia. The Marshallian expenditure elasticities for U.S. fruit are estimated to be between 1.01 and 1.21. For grapes and oranges, competition with other fruits appears to be more important that competition with other supply sources. For apples, strong source-differentiated substitution relationships are found.