 Retail-to-Farm Demand Linkages, Imperfect Competition, and Short-Run Price DeterminationMichael K. Wohlgenant ()
Chapter Chapter 8 in Market Interrelationships and Applied Demand Analysis, 2021, pp 137-164 from Palgrave Macmillan Abstract: Abstract In this chapter, we consider both vertical and horizontal effects on derived demand for raw materials, and total effects of exogenous variables on retail and farm prices. In the last chapter we showed how retail-to-farm price linkages could be formulated and estimated consistently. In this chapter, these relationships are combined with the retail demand elasticities for meats from Chapter 5 to derive total impacts of retail demand, farm supply, and marketing costs on derived demand and retail and farm prices. We derive the properties of these generalized derived demands as well as formulas for the total elasticities. This chapter also evaluates this approach to retail-to-farm price linkages in light of role imperfect competition may play on the price relationships. Finally, causes of short-run price determination from lags between retail and farm prices are evaluated, and an empirical application to beef price spreads is presented. Date: 2021 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:psachp:978-3-030-73144-1_8 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-73144-1_8 Access Statistics for this chapter More chapters in Palgrave Studies in Agricultural Economics and Food Policy from Palgrave Macmillan |
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