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

Drebee, Hayder Abbas and Abdul Razak, Nor Azam and Abd Karim, Mohd Zaini (2014) Is there an overlapping market between national car producers in Malaysia? Jurnal Ekonomi Malaysia, 48 (1). pp. 75-85. ISSN 0126-1962

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

Item Type: Article
Uncontrolled Keywords: Automobile choice; Proton, Perodua; overlapping market; conditional logit model.
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: School of Economics, Finance & Banking
Depositing User: Dr. Nor Azam Abdul Razak
Date Deposited: 29 Dec 2014 06:56
Last Modified: 18 Apr 2016 00:25

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