MARKET STRUCTURE AND CONSUMER VALUATION IN THE RBST-FREE AND ORGANIC MILK MARKETS
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This study uses revealed preferences of consumers to study the consumer valuations of rBST-free and organic milk. The study specifies and estimates a quadratic AIDS model for different milk types using US supermarket scanner data. The introduction of rBST-free and organic milk is used to estimate both competitive and variety effects as measures of consumer valuations. Results show significant consumer valuations for organic milk and to a lesser extent rBST-free milk.