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|dc.description.abstract||Germany is the second largest coffee market in the world, just overshadowed bythe United States. Coffee is the most popular beverage in Germany – in fact morepopular than beer. In 1999 the five biggest companies in the raosted coffee markethad a combined market share of 84.5%. The market is characterized by fiercecompetition which continues to squeeze the earnings of the German coffeeroasters. The degree of competition was expected to increase even more as aresult of a merger in 1997. This paper examines the pricing behavior in the Germanmarket for roasted coffee. The second question is whether the degree ofcompetition has changed due to changes in market structure and changes indemand. Changes in market structure are the merger of Tchibo and Eduscho in1997. Changes in demand are cyclical demand fluctuations - every year beforeEaster and Christmas. Empirical results are derived using data on the aggregatemarket for roasted coffee in Germany during 1992:1 to 2000:12 and indicate thatthe market is suffering on not only a severe price competition, but on price war.||en_US|
|dc.relation.ispartofseries|||aFE Workingpaper / Universität Kiel, Department of Food Economics and Consumption Studies |x0204||en_US|
|dc.subject.keyword||Market for roasted coffee ; Germany ; conjectural variation ; market power ; simultaneous equation system ; GMM||en_US|
|dc.title||The dark side of coffee. Price war in the German market for roasted coffee||en_US|
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