nep-mkt New Economics Papers
on Marketing
Issue of 2006‒07‒21
three papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. Innovation and market dynamics in the EPO market By Sorisio, Enrico; Strøm, Steinar
  2. The Economic Impacts of Increased Fruits and Vegetable Consumption in Iowa: Phase II By Swenson, David A.
  3. What money buys: clients of street sex workers in the US By Della Giusta, Marina; Di Tommaso, Maria Laura; Shima, Isilda; Strøm, Steinar

  1. By: Sorisio, Enrico (Neuroscienze PharmaNess scarl); Strøm, Steinar (Dept. of Economics, University of Oslo)
    Abstract: We have estimated the demand of erythropoietin (EPO) on market data from the Nordic countries. Assuming that prices are set in a Nash-Bertrand game we determine the degree of competition in this Nordic market. We also report the impact of product innovation on welfare, e.g on consumer and producer surplus. The product innovation is the entry of Aranesp in the Nordic market. We find a positive effect related to the introduction of Aranesp in the EPO market. The high increase in consumer surplus however seems not to be accompanied by a great increase in producer surplus, whose growth is slight. Some time after the introduction of the innovation, the surplus growth does not seem to increase, it remains more or less the same (or decreases a bit). An important conclusion in our paper is that although there are few firms competing in the Nordic market for EPO, the estimated long run market power is low.
    Keywords: Discrete choice; demand for pharmaceuticals; monopolistic competition; EPO
    JEL: C35 D43 I18 L11
    Date: 2006–06–09
  2. By: Swenson, David A.
    Abstract: This report measures the potential net economic impacts that could accrue to the state of Iowa were it to achieve various levels of fruits and vegetable production and direct and grocery sales to consumers. Two of the scenarios anticipate expanded Iowa production of 37 fruits and vegetables so that they substitute directly for existing imported commodities for a quarter of the year. Both scenarios add a new industry where farmers directly market their production to consumers.The third and fourth scenarios examine the economic impact that would occur under a consumption-based consideration where all Iowans followed a diet including five or seven servings of Iowa-grown fruits and vegetables per day for three months of the year.
    JEL: C5
    Date: 2006–07–13
  3. By: Della Giusta, Marina (University of Reading Business School); Di Tommaso, Maria Laura (University of Turin, Department of Economics "S. Cognetti de Martiis"); Shima, Isilda (University of Turin, Department of Economics "S. Cognetti de Martiis"); Strøm, Steinar (Dept. of Economics, University of Oslo)
    Abstract: An econometric model that explores the effect of personal characteristics and attitudes of clients on their demand for prostitution is estimated on data from a survey of clients of street sex workers in the US. The results reveal that clients of street sex workers in our sample have two diametrically opposite profiles: one for clients who declared never to have been with a sex worker or to have been only once, whom we label “experimenters”, and one for the more experienced ones that we name “regulars”. The experimenters correspond to a more machist type, with negative views of women, and of sex workers (who are believed to be different from other women but condemned at the same time), and viewing prostitution as a complement to stable relationships. The regulars have more liberal view of women, and of sex workers, the more they dislike control the more they demand, they like variety. Their demand also increases with age and with having a permanent job, which may indicate a positive income effect. These appear to be men who are happy to satisfy their sexual wants through sex workers, which they prefer to relationships. The users of condoms seem to fit the profile of the regulars, whereas the non-users fit that of the experimenters.
    Keywords: Demand for sex; ordered logit; factor analysis; US data.
    JEL: C35 D12
    Date: 2006–07–10

This nep-mkt issue is ©2006 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.