CONTENTS
 Page
 SUMMARY ...........-....... ........................................ ...- 3
 INTRODUCTION ............... .......- ....--- ..... .................-- 5
 THE ECONOMIC MODEL ............... .......................... -- 5
 THE EXPERIMENTAL APPROACH ................. ...--..---- ............... 9
 THE STATISTICAL MODEL ....-...--...--------...--..--..--..--.. --..----.-..--12
 ANALYTICAL PROCEDURE ............... ----- ----.....----------... 16
 Organization of the Data ................-....--....- --.. .----------..-- 16
 Alternative Forms of the General Model .................. -----..................... 18
 Examination of Hypotheses for Selection of Specific Model ...............-- 19
 ECONOMIC IMPLICATIONS OF THE ESTIMATING MODEL .........-..-......-- ..-- ......--.. 28
 The General Demand Function .-....----...--...... -- .......---..---.. 29
 Demand Shifting Parameters .-......-.......----- .....--- ..... ..-- 30
 APPENDIX I. Basic Data ............-..................---------.---..--..--. 33
 APPENDIX II. Effect of Experimental Prices on Store Traffic .............. 34
 APPENDIX III. Matrix Representation of the Analytical Model and
 Data for Covariance Analysis .-----...................................... 36
 APPENDIX IV. Normal Equations Used in Estimating the Regression,
 Store, Week and Age Constants for the Final Model.. 44









 ACKNOWLEDGMENTS
 In the course of developing this study, the authors relied heavily upon
the advice, assistance and cooperation of many persons. While aid from
all sources was deeply appreciated, particular recognition is accorded the
following individuals who -were most instrumental to the completion of
the work:
 Dr. R. L. Anderson and Dr. H. L. Lucas, Department of Experimental
Statistics, North Carolina State College, developed the experimental design
and rendered valuable advisory and consultative assistance in connection
with analytical procedures.
 Dr. H. G. Hamilton, head, Department of Agricultural Economics, Uni-
versity of Florida, bore the brunt of the administrative burden created by
the study and gave unfailing support to the effort.
 Dr. Vasant L. Mote, Department of Agricultural Economics, University
of Florida, critically reviewed preliminary drafts of the manuscript and
made several suggestions which contributed materially to an improvement
of the analytical presentation.
 Mrs. Bonnye T. Leary and Mrs. Billie S. Lloyd performed the statistical
computations. Mrs. Jane M. Maddox and Mrs. Willie J. DuBose per-
formed the difficult task of typing the manuscript.