RESEARCH AND ADVERTISING DECISIONS IN AN OPEN ECONOMY: THE CASE OF COLOMBIAN MILDS COFFEE

Daniel Sellen, Ellen W. Goddard, Daniel Sellen & Ellen W. Goddard
Research and advertising investment both offer the potential to increase producer surplus. A model is developed that includes applied research and generic advertising with the aim of measuring marginal and optimal returns from each. While applicable to specific firm behavior, the model is applied to data from the world coffee market, with particular focus on Kenyan and Colombian producer groups.
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