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The long run, market power and retail pricing

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  • Adusei Jumah

Abstract

The paper examines the existence of market power in the respective pork and poultry (“white” meat) meat markets in Austria by means of the Johansen cointegration technique. The existence of market power in pork retail pricing is revealed. Poultry retail pricing is, however, found to be competitive. The result for pork is attributed to tradition and to the high pre-EU border protection rates. The paper also revealed the versatility of the Johansen cointegration technique as a tool capable of analysing both competitive and imperfect market situations. The paper recommends meat policy to be product specific rather than holistic. Copyright Springer-Verlag 2004

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  • Adusei Jumah, 2004. "The long run, market power and retail pricing," Empirical Economics, Springer, vol. 29(3), pages 605-620, September.
    • Handle: RePEc:spr:empeco:v:29:y:2004:i:3:p:605-620
    DOI: 10.1007/s00181-004-0201-0
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    Cited by:

    1. Dieter Pennerstorfer & Franz Sinabell, 2013. "Spatial Price Differentiation and Regional Market Power. The Case of Food-Retailing in Austria," WIFO Working Papers 458, WIFO.
    2. Fofana, Abdulai & Jaffry, Shabbar, 2008. "Measuring Oligopsony Power of UK Salmon Retailers," Working Papers 61116, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Fofana, Abdulai & Jaffry, Shabbar, 2006. "Measuring Market Power in the UK Retail Salmon Industry," Working Papers 45873, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    4. Sascha A. Weber & Sven M. Anders, 2007. "Price rigidity and market power in German retailing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 737-749.
    5. Simon Pröll & Heidelinde Grüneis & Franz Sinabell, 2022. "Market Concentration, Producer Organizations, and Policy Measures to Strengthen the Opportunities of Farmers for Value Addition—Empirical Findings from the Austrian Meat Supply Chain Using a Multi-Met," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    6. Sayed H. Saghaian, 2007. "Beef safety shocks and dynamics of vertical price adjustment: The case of BSE discovery in the U.S. beef sector," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 333-348.
    7. Clark, J. Stephen & Cechura, Lukas & Berhanu, Adugna, 2011. "BSE Disease Outbreaks, Structural Change and Market Power in the Canadian Beef Industry," Working Papers 114097, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    8. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    9. Zhu, Xuehong & Li, Xinyuan & Zhang, Hongwei & Huang, Jianbai, 2019. "International market power analysis of China’s tungsten export market -- from the perspective of tungsten export policies," Resources Policy, Elsevier, vol. 61(C), pages 643-652.

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    More about this item

    Keywords

    Market power; markup pricing; cointegration; long run; C32; D43; L11; Q13;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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