Replication data for: The Rise of Fringe Competitors in the Wake of an Emerging Middle Class: An Empirical Analysis

Principal Investigator(s): View help for Principal Investigator(s) Alon Eizenberg; Alberto Salvo

Name	File Type	Size	Last Modified
GMMobjective.m	text/plain	430 bytes	10/12/2019 08:22:AM
Readme.pdf	application/pdf	11.1 KB	10/12/2019 08:22:AM
compute_delta.m	text/plain	4.7 KB	10/12/2019 08:22:AM
contraction.m	text/plain	387 bytes	10/12/2019 08:22:AM
counterfactual.m	text/plain	4.6 KB	10/12/2019 08:22:AM
covariance_matrix.m	text/plain	1.5 KB	10/12/2019 08:22:AM
diagnostics.m	text/plain	11 KB	10/12/2019 08:22:AM
mktshares.m	text/plain	1.3 KB	10/12/2019 08:22:AM
mktshares_types.m	text/plain	1.1 KB	10/12/2019 08:22:AM
plot_hhtype_elast.m	text/plain	2.2 KB	10/12/2019 08:22:AM

Project Description

Summary: The "emerging middle class" is a force of economic importance in many consumer markets around the globe. A striking phenomenon in some of these markets is the growth of "generic," low-price brands. This paper examines these phenomena in Brazil's large soft drink market. Our study draws on data sources that capture both social mobility and market outcomes. Our analysis suggests that the emergence of a price-sensitive, new middle class aided the staggering growth of a fringe of generic producers. Our estimated demand model rationalizes a drastic price cut, led by Coca-Cola, that allowed it to contain the fringe's growth. (JEL D12, L11, L66, L81, M37, O12, O14)

Scope of Project

JEL Classification:
      D12 Consumer Economics: Empirical Analysis
      L11 Production, Pricing, and Market Structure; Size Distribution of Firms
      L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
      L81 Retail and Wholesale Trade; e-Commerce
      M37 Advertising
      O12 Microeconomic Analyses of Economic Development
      O14 Industrialization; Manufacturing and Service Industries; Choice of Technology

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Published Versions

V1 [2019-10-12]

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DDI 2.5

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