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Market Power And Asymmetry In Farm-Retail Price Transmission

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  • Acharya, Ram N.

Abstract

A finite mixture model is used to examine whether price asymmetries exist in U.S. fresh strawberry markets. Two distinct pricing regimes are identified. Results show that price asymmetries exist only at 34 percent of the cases and market power has played an important role in generating such asymmetric price relationships.

Suggested Citation

  • Acharya, Ram N., 2000. "Market Power And Asymmetry In Farm-Retail Price Transmission," 2000 Annual meeting, July 30-August 2, Tampa, FL 21768, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21768
    DOI: 10.22004/ag.econ.21768
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    References listed on IDEAS

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    1. Beard, T Randolph & Caudill, Steven B & Gropper, Daniel M, 1991. "Finite Mixture Estimation of Multiproduct Cost Functions," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 654-664, November.
    2. Rudolf Wolffram, 1971. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches—Some Critical Notes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 356-359.
    3. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
    4. John Schroeter & Azzeddine Azzam, 1991. "Marketing Margins, Market Power, and Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 990-999.
    5. James P. Houck, 1977. "An Approach to Specifying and Estimating Nonreversible Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 570-572.
    6. John Bernard & Lois Schertz Willett, 1998. "Broiler price transmission results and data periodicity," Applied Economics Letters, Taylor & Francis Journals, vol. 5(4), pages 221-224.
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    Cited by:

    1. Intal, Ponciano Jr. S. & Ranit, Luis Osman, 2001. "Literature Review of the Agricultural Distribution Services Sector: Performance, Efficiency and Research Issues," Discussion Papers DP 2001-14, Philippine Institute for Development Studies.

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