Journal
AGRICULTURAL ECONOMICS
Volume 46, Issue 6, Pages 729-737Publisher
WILEY
DOI: 10.1111/agec.12188
Keywords
Price transmission; Marketing margin; Market equilibrium; Competition
Categories
Funding
- Hatch Project [S-1062, ALA011-2-14017]
Ask authors/readers for more resources
Perfect farm-retail price transmission sometimes is taken to mean an elasticity of price transmission (EPT) equal to 1. We show that this definition is inconsistent with Gardner's (1975) model. We also show that the absolute marketing margin (defined as the difference between the retail price and farm price) responds differently to shifts in retail demand, input supply, and technical change in the marketers' production function than does the relative marketing margin (defined as the ratio of the retail price to the farm price). The empirical implications of these results are discussed in some detail.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available