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Further Results on Asymmetry in Farm-Retail Price Transmission under Spatial Monopoly

Panos Fousekis ()

Journal of Agricultural & Food Industrial Organization, 2008, vol. 6, issue 1, 1-11

Abstract: 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.

Date: 2008
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Handle: RePEc:bpj:bjafio:v:6:y:2008:i:1:n:7