The Long Run, Market Power and Retail Pricing

Adusei Jumah ()

No 78, Economics Series from Institute for Advanced Studies

Abstract: The paper uses the Johansen cointegration approach to analyse long-run pricing strategies of pork and chicken retailers in Austria. Long-run retail pricing strategy is found to be dependent on market share and price elasticity of demand for product. A combination of mark-up pricing strategy for pork and a competitive pricing strategy for chicken is considered by retailers to yield maximum profit. Long-run price adjustment reveals linkages to pricing strategy. The versatility of the Johansen cointegration technique as a tool capable of analysing both competitive and imperfect market situations is also revealed. The paper recommends meat policy to be product specific rather than holistic.

Keywords: Market power; Markup pricing; Cointegration; Long run (search for similar items in EconPapers)
JEL-codes: C32 D43 L11 Q13 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2000-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://irihs.ihs.ac.at/id/eprint/1253 First version, 2000 (application/pdf)

Related works:
Journal Article: The long run, market power and retail pricing (2004)
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