Is there an overlapping market between national car producers in Malaysia?

摘要

This paper examines how the choice of three broad categories of automobiles in Malaysia (i.e. Proton, Perodua, andudforeign automobiles) is affected by a change in the price of a specific car model. Using a sample of 478 automobileudowners in Malaysia, a discrete choice analysis is conducted based on the conditional logit model. In general, it isudfound that the own-price effect on Proton (Perodua) cars is negatively related to a specific Proton (Perodua) model;udin contrast, the cross-price effect on Proton (Perodua) cars is positively related to a specific Perodua (Proton) model.udOf the nine models evaluated, three of them show a significant overlapping market segment. This finding implies thatudProton and Perodua should differentiate these products further to lessen competition between them.