| This thesis is an investigation of the effects of discounts on the demand for pork products in Canada. A linear approximation Almost Ideal Demand System (LA/AIDS), with the Shonkwiler and Yen (1999) two-step sample selection procedure, is estimated. The first step focuses on consumer characteristics affecting the probability of purchasing pork products. The second step examines the discount and price variables associated with the quantities of pork products purchased.;The results indicate that four discounts (coupons, membership discounts, price cuts, and quantity discounts) positively affect the demand for selected pork products in Canada. This study has three contributions to literature. Firstly, this study presents the consumption patterns of disaggregated pork products by exploring the effects of discounts. Secondly, this study categorizes fresh pork products based on the origin of the cuts, which is different from past studies. Finally, the price and expenditure elasticity estimates stand alone as an important contribution. |
