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Jurnal Ekonomi Malaysia

48 (1) 2014 75 – 85

Is There an Overlapping Market between National Car Producers in Malaysia?
Adakah terdapat Pertindihan Pasaran antara Pengeluar Kereta Nasional di Malaysia?

College of Administration and Economics
Al-Qadisiyyah University, Al-Diwaniyah, Iraq

draibi2@yahoo.com

School of Economics, Finance and Banking
Universiti Utara Malaysia, 06010 UUM Sintok, Kedah,
MALAYSIA

azam@uum.edu.my

Othman Yeop Abdullah Graduate School of Business
Universiti Utara Malaysia, 06010 UUM Sintok, Kedah,
MALAYSIA

zaini500@uum.edu.my

Abstract

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.

Keywords

Automobile choice; conditional logit model; overlapping market; Perodua; Proton

JEL Codes

C25, D12
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Bibliography

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Drebee, , Abdul Razak, , & karim, (2014). Is There an Overlapping Market between National Car Producers in Malaysia?. Jurnal Ekonomi Malaysia, 48(1), 75–85.

@article{drebee2014overlapping,
  title={Is There an Overlapping Market between National Car Producers in Malaysia?},
  author={Drebee, Hayder Abbas and Abdul Razak, Nor Azam and karim, mohd},
  journal={Jurnal Ekonomi Malaysia},
  volume={48},
  number={1},
  pages={75—85},
 

year={2014},
}

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