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Further Results on Asymmetry in Farm-Retail Price Transmission under Spatial Monopoly
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Panos Fousekis
Published/Copyright:
August 25, 2008
This work suggests that the range of parametric configurations which give rise to a strictly convex farm-retail price transmission function is wider than that identified by Azzam (1999). As a matter of fact, Azzam's implicit result (that is, a strictly convex aggregate demand function leads always to a strictly concave price transmission function) emerges only as a particular case of the result obtained here for large elasticity of aggregate demand and patient enough retailers.
Keywords: farm-retail price transmission; spatial monopoly
Published Online: 2008-8-25
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
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- Demand and Pricing in the U.S. Margarine Industry
- Understanding Consumer Interest in Organics: Production Values vs. Purchasing Behavior
- Estimating the Welfare Loss to Consumers When Food Labels Do Not Adequately Inform: An Application to Fair Trade Certification
- The Role of Farmers' Risk aversion for Contract Choice in the US Hog Industry
- Private Labeling and Competition between Retailers
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- Search Costs in Identity-Preserved Agricultural Markets
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