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Dynamics of Price Adjustment in Qualitatively Differentiated U.S. Markets: The Case of Organic and Non-organic Apples

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  • Nemati, Mehdi
  • Saghaian, Sayed

Abstract

Relationships between organic and non-organic counterpart’s prices have become complex with changes in the organic market structure. The concern is whether these fluctuations lead to changes in price dynamics between these products. We investigate price dynamics between organic and non-organic apple prices, using an MS-AVECM approach. Additionally, we use Gala, Fuji, and Red Delicious prices to examine whether the use of different varieties leads to different results. The results support the changes in price dynamics of organic and non-organic apples and we find evidence of asymmetric responses to negative and positive price changes for both organic and non-organic apples.

Suggested Citation

  • Nemati, Mehdi & Saghaian, Sayed, 2018. "Dynamics of Price Adjustment in Qualitatively Differentiated U.S. Markets: The Case of Organic and Non-organic Apples," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 36(1).
    • Handle: RePEc:ags:jloagb:302472
    DOI: 10.22004/ag.econ.302472
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    Cited by:

    1. Zare, Samane & Sayed, Saghaian, 2018. "Recession and Income Effect on the Private Label Products Demand: A Case Study of Fluid Milk," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266695, Southern Agricultural Economics Association.

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    Keywords

    Agribusiness; Demand and Price Analysis;

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