Abstract
This paper studies asymmetries in the magnitude of price transmission from farm to retail markets in a simple framework consisting of three stages of the market chain: farm, wholesale, and retail. The effects of farm supply curvature and buyer power in farm markets, in addition to those of consumer demand curvature and seller power in retail markets, on asymmetries in price transmission are examined. Strict convexity of farm supply and wholesalers/processors' buyer power in farm markets are shown to be a main reason for asymmetries in the magnitude of farm-retail price transmission. The effect of consumer demand curvature and seller power in retail markets on farm-retail price transmission is often indeterminate and tends to be relatively small.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Agricultural & Food Industrial Organization
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
