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Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports

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  • Lavoie, Nathalie

Abstract

This paper develops a conceptual and empirical model to examine price discrimination in Canadian bread wheat exports. The industrial organization and trade literature have primarily focused on consumer goods. However, the nature of intermediate goods is such that the current New Empirical Industrial Organization (NEIO) approaches and trade models are not readily applicable. This study modifies the model of quality differentiation developed by Mussa and Rosen (1978) to the realities of bread wheat import demand. The outline of an empirical model designed to test and isolate the bases of price discrimination under quality differentiation is also presented.

Suggested Citation

  • Lavoie, Nathalie, 2001. "Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports," 2001 Annual meeting, August 5-8, Chicago, IL 20603, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20603
    DOI: 10.22004/ag.econ.20603
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    1. Lavoie, Nathalie, 2002. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," Research Reports 25210, University of Connecticut, Food Marketing Policy Center.
    2. Richard Carew & Wojciech J. Florkowski, 2003. "Pricing to Market Behavior by Canadian and U.S. Agri-food Exporters: Evidence from Wheat, Pulse and Apples," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(2), pages 139-159, July.

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