HALO EFFECT OF NORWEGIAN SALMON PROMOTION ON EU SALMON DEMAND

摘要

The Differential Almost Ideal Demand System (AIDS) is estimated to exam the direct and spillover responses for salmon promotion conducted by the Norwegian Seafood Export Council in EU Atlantic salmon market. The model allows the advertising effect ondemand curve to shift and rotate simultaneously. EU demand is segmented by country of origin, namely Norway, Chile, United Kingdom, Canada, and Rest of World. Results suggest that Norwegian advertising shifted its own demand curve rightward and curve ofRest of World leftward and counterclockwise rotated the curve of UK. The advertising-induced demand curve rotation is found to be important for marginal benefit-cost ratio and producer surplus measurement. A tiny change of price elasticity causes a substantial change of marginal benefit-cost ratio and a not tiny change of producer surplus.