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Marketing Order Impacts on Farm-Retail Price Spreads: The Suspension of Prorates on California-Arizona Navel Oranges

Author

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  • Gary D. Thompson
  • Charles C. Lyon

Abstract

The 1985 suspension of the prorate on California-Arizona navel oranges decreased FOB retail price spreads in Atlanta and San Francisco by about 1.3 cents per pound. Four reduced-form models of price spreads were estimated as seemingly unrelated regressions for price spreads in Atlanta, Dallas, and San Francisco. Nested and non-nested hypothesis testing procedures indicated a markup model as the most plausible one for explaining short-run changes in price spreads.

Suggested Citation

  • Gary D. Thompson & Charles C. Lyon, 1989. "Marketing Order Impacts on Farm-Retail Price Spreads: The Suspension of Prorates on California-Arizona Navel Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 647-660.
  • Handle: RePEc:oup:ajagec:v:71:y:1989:i:3:p:647-660.
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    File URL: http://hdl.handle.net/10.2307/1242020
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    Citations

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    Cited by:

    1. John M. Crespi & Adriana Chacón-Cascante, 2004. "Do U.S. marketing orders have much market power? An examination of the Almond Board of California," Agribusiness, John Wiley & Sons, Ltd., vol. 20(1), pages 1-15.
    2. Robert Romain & Maurice Doyon & Mathieu Frigon, 2002. "Effects of state regulations on marketing margins and price transmission asymmetry: Evidence from the New York City and upstate New York fluid milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 301-315.
    3. Elizabeth Hoffman & Gary D. Libecap, 1994. "Political Bargaining and Cartelization in the New Deal: Orange Marketing Orders," NBER Chapters, in: The Regulated Economy: A Historical Approach to Political Economy, pages 189-222, National Bureau of Economic Research, Inc.
    4. Lyon, Charles C. & Thompson, Gary D., 1991. "Model Selection With Temporal And Spatial Aggregation: Alternative Marketing Margin Models," Staff Papers 13253, University of Minnesota, Department of Applied Economics.
    5. McAleer, Michael, 1995. "The significance of testing empirical non-nested models," Journal of Econometrics, Elsevier, vol. 67(1), pages 149-171, May.
    6. Richards, Timothy J. & Kagan, Albert & Mischen, Pamela & Adu-Asamoah, Richard, 1996. "Marketing Order Suspensions And Fresh Lemon Retail-Fob Margins," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-15, December.
    7. Lee L. Schulz & John M. Crespi, 2012. "Presence of Check‐Off Programs and Industry Concentration in the Food Manufacturing Sector," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 148-156, March.
    8. Kachel, Yael & Finkelshtain, Israel, 2010. "A Comparative Analysis of Antitrust Regulations in the Agricultural Sector in Israel, the US and the EU," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 38(1), pages 1-35.
    9. Charles C. Lyon & Gary D. Thompson & Roger Fox, 1989. "Price spreads for California-Arizona navel oranges during and after the 1985 prorate suspension," Agribusiness, John Wiley & Sons, Ltd., vol. 5(6), pages 573-595.
    10. Hansmire, Michelle R. & Willett, Lois Schertz, 1993. "Price Transmission Processes: A Study of Price Lags and Asymmetric Price Response Behavior for New York Red Delicious and McIntosh Apples," Research Bulletins 123011, Cornell University, Department of Applied Economics and Management.
    11. Sexton Richard J. & Zhang Mingxia & Chalfant James A., 2005. "Grocery Retailer Behavior in Perishable Fresh Produce Procurement," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-23, February.
    12. Richards, Timothy J. & Patterson, Paul M. & van Ispelen, Pieter, 1998. "Modeling Fresh Tomato Marketing Margins: Econometrics And Neural Networks," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-14, October.
    13. Frigon, Mathieu & Doyon, Maurice & Romain, Robert F.J., 1999. "Asymmetry in Farm-Retail Price Transmission in the Northeastern Fluid Milk Market," Research Reports 25220, University of Connecticut, Food Marketing Policy Center.

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