| 초록 |
This study presents the way to estimate simultaneously consumption share functions for goods without an experience to be consumed. Survey data for WTPs of consumers is used in this paper because consumer preferences are not informed. Firstly, price sets are randomly generated and a kind of brand which each consumer chooses at each price set by assuming that he or she choose a brand to provide the highest consumer surplus per money unit is determined. Secondly, consumption shares are calculated by dividing a number of consumers to choose a brand by total number of consumers. And finally, consumption share functions to be estimated satisfy the aggregation condition and homogeneity condition and can afford the own and cross price elasticities if equilibrium prices and quantities are given. In this paper it is applied to estimate consumption share functions for rice in Korea. Korean people has never consumed foreign rice for table using because Korea imports only market access and Korean government has sold it for only processing raw materials. Consumption share functions for domestic and foreign rice are estimated. Estimated consumption share functions seem likely to be reasonable. Own price elasticities are estimated by all negative and cross price elasticities are also all positive. And price elasticities are relatively high even though a total demand for rice is known to be very inelastic in price. This is consistent with the economic theory that the more a good has substitutes the more it becomes elastic in price.
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