A market share model for vegetable and tropical oils

Abstract

This paper is concerned with specification and estimation of a model explaining market shares for the world's major vegetable and tropical oils. Market shares are explained by relative prices and an attribute variable designed to reflect increased consumer preference for polyunsaturated fats and oils. A general autoregressive distributed lag model is specified, with data acceptable reduction of the unrestricted model yielding a more parsimonius representation of the data generation process.