Retail Market Level Research Articles

Стан та перспективи організації децентралізованої торгівлі електроенергією на регіональному рівні

The article is devoted to the analysis of problems and experience of conducting research on the implementation of Smart Grid and Demand Response concepts in power supply systems with sources of distributed, decentralized generation and active consumers in power systems. The issue of finding ways to solve the scientific and technical problems of implementing the concepts of Smart Grid and Demand Response when solving the tasks of designing and building local electric power systems, taking into account the peculiarities of their functioning in the unified energy system of Ukraine was considered. The range of under-researched problems of decentralized management development in the retail segment of the electricity market in the organization of micro-markets based on the application of modern approaches of multi-agent management and block chain technology for the business processes organization is outlined. The main tasks of the conceptual design of the new market architecture of micro-markets on local electricity systems and their integration into the existing systems of organizational, operational-technological and information management of the electricity market are presented. Micro-markets are actually developing and, with experience, can become a driver for the post-war development of the market infrastructure in terms of the simultaneous implementation and practical application the Smart Grid and Demand Response principles for the implementation of technical solutions at the retail market level.

Retail trader pricing behavior in the traditional rice market: A micro view for curbing inflation

The price of rice at the retail level affects consumer welfare and influences inflation. The research objective was to study rice retail trader pricing behavior in traditional markets. This study employed an econometric model consisting of six equations of price spread between the retail market level and wholesale level of different rice qualities and grades. To overcome endogeneity problems due to the use of several equations that could cause potential bias, the simultaneous method with the 3SLS approach was deemed appropriate to use to obtain consistent and efficient coefficient estimates. The results show that, by examining the behavior of price spreads in the model, it can be deduced that rice retailers in the traditional market applied a price stabilization strategy. A lower price spread responded to an increase in price at the wholesale level. Rice retailers in traditional markets also implemented a price-averaging strategy. The results of this study have important policy implications for reducing food price volatility and its impact on inflation. That is, a price policy aimed at price stabilization at the retail level, as in this study, will be more effective if the price stabilization is focused on the wholesale level. However, if the pricing policy continues to be applied at the retail level, it must consider the relationships between different rice qualities and prices. This study also highlights the need for more intensive research on pricing behavior at the wholesale level.

Sustainable horticultural products in Indonesian traditional retail market

Red chili, cayenne pepper, shallot, and garlic are horticultural products that are very important for the essential ingredients of various cuisines in Indonesia. Although household expenditure on those products is relatively small compared to total food expenditure, the government pays great attention to its price movements. This study aims to analyze price behaviour at the retailer level in traditional markets. The data used in the study are obtained from the National Strategic Food Price Information Center (PIHPSN) of the Central Bank of Indonesia, the daily price data for horticultural products at the wholesale and retail market levels. The regression model built in this study was estimated using the 3SLS method. The results showed that horticultural product retailers in traditional markets tried to stabilize prices. However, the results cannot conclusively conclude the existence of averaging price practices. This research also showed a spill over effect of rice’s retail price on the price of horticultural products in traditional markets. This study’s results are expected to help formulate government policies to stabilize food prices at the consumer level.

Economic impact of fluctuations in oilsardine landings in India

The Indian oilsardine Sardinella longiceps (Valenciennes, 1847) is a significant contributor to the marine fisheries economy of India. The species showed wide fluctuations in landings in the past and during recent years, the decline in landings is an issue of concern for sustainable harvest of the resource especially in the context of climate change regime. The paper analysed the economic impacts of fluctuations in oilsardine landings in terms of gross earnings realised at landing centre and retail levels; inflation in the domestic markets and external trade during the 2000-2018 period. The analysis indicated that the decline in landings was more in the state of Kerala as compared to all India landings. The inflation at point of first sales (landing centre level) was more during 2000-09 period whereas at retail market level inflation was highest during 2010-2018. The inflationary pressure on domestic consumers in Kerala was more during 2010-2018 period. The growth in external trade of sardines was in tune with the Indian oilsardine landings in the country.

Optimal bargaining timing of a wholesale price for a manufacturer with a retailer in a dual-channel supply chain

This paper explores the optimal timing of when a manufacturer should bargain a wholesale price with a retailer in a dual-channel supply chain that consists of the manufacturer and the retailer. To address the problem, we construct a game-theoretic model in which the manufacturer can sell products directly to consumers (direct channel) and through the retailer (retail channel). We also assume that the manufacturer determines the direct price in the direct channel and the retailer determines the retail price in the retail channel, while the manufacturer and the retailer bargain the wholesale price. The analytical solution of our model yields the following clear-cut result: the manufacturer achieves its highest profit by bargaining the wholesale price earlier than determining the direct price. Moreover, we show that this result holds even if the control variables determined by the two supply chain members at the retail market level are not prices but quantities, proving the robustness of the result. Consequently, the result provides the managerial implication usable for practical decision-making that if a manufacturer using a dual-channel supply chain can choose the timing to negotiate the wholesale price with a retailer, the manufacturer should have the opportunity before determining the direct price or the quantity of products sold directly to consumers.

European energy market liberalization: experiences and challenges

The European electricity market liberalization process started more than 20 years ago, one of its main purposes being to organize the provision of electricity and gas more efficiently by introducing competitive forces where possible and regulation where needed. Despite the fact that most Member States of the European Union (EU) have liberalized their electricity market, a European internal market for electricity—one of the ultimate goals of EU energy policy—has not been realized yet. For this to be realised a number of remaining obstacles need to be removed. This paper gives a brief overview of the EU electricity market liberalization process and surveys the main remaining issues and challenges. At the retail market level, additional efforts are required to increase retail competition and to remove regulated retail prices. Also, more effort is required to physically integrate existing regional electricity markets, by removing the existing barriers between regions and countries. Building new interconnection capacity and improving the allocation procedures for cross-border capacities can help achieving this. Furthermore, the EU should increase efforts to further harmonize and integrate electricity markets and electricity market policies and to encourage the demand-side of the market to participate more intensively through demand response.

Vertical price relationships between different cuts and quality grades in the U.S. beef marketing channel: A wholesale-retail analysis

The present article offers an empirical assessment of the degree and the structure of price dependence between wholesale and retail market levels in the U.S. beef industry, while accounting for product differentiation. This is pursued using the statistical tool of copulas and monthly rates of price changes for different cuts and quality grades of the beef product for the time period 2002–2016. Six wholesale–retail pairs were formed based on different cuts and quality grades. The empirical results suggest that prices at retail level respond differently to extreme negative and positive wholesale price shocks. More specifically, extreme price increases at the wholesale level are transmitted to the retail level in five out of six pairs whereas extreme price decreases are not passed from the wholesale to the retail market level in five out of six pairs. Based on these findings, there is evidence of asymmetric price relationships between wholesale–retail market levels in the U.S. beef marketing channel, when quality differences in cuts and grades are considered.

Effects of milk type, production month, and brand on fatty acid composition: A case study in Korea

The aim of this study was to examine the difference in fatty acid (FA) composition of organic and conventional milk at the retail market level in Korea for different milk production months and brands. The essential FA contents of the milk vary significantly under the combined effects of milk type, production month, and brand. Chemometric analysis reveals a greater difference between milk types than between production months and identifies significantly different levels of nutritionally desirable FAs—notably C18:3 n−3, C18:2 n−6 c and t—in the organic and conventional milks. Notwithstanding the limited sampling size and period, the results from this study may provide a better understanding of the nutritional quality of organic milk to consumers who are interested in organic milk intake.

Salmonella on Raw Poultry in Retail Markets in Guatemala: Levels, Antibiotic Susceptibility, and Serovar Distribution

The objective of this study was to determine Salmonella numbers on retail raw chicken carcasses in Guatemala and to phenotypically characterize the isolates (serotyping and antibiotic susceptibility). In total, 300 chicken carcasses were collected from seven departments in Guatemala. Salmonella numbers were determined using the most-probable-number method following the U.S. Department of Agriculture’s Food Safety and Inspection Service protocol. In total, 103 isolates were obtained, all of which were tested for antibiotic susceptibility, whereas 46 isolates were serotyped. Overall, Salmonella prevalence and mean number (mean log most probable number per carcass) was 34.3% and 2.3 (95% confidence interval: 2.1 to 2.5), respectively. Significant differences (P < 0.05) in Salmonella prevalence were found by storage condition (refrigerated or ambient temperature), market type (wet markets, supermarkets, and independent poultry stores), chicken production system (integrated or nonintegrated production company), and chicken skin color (white or yellow). Chickens produced by integrated companies had lower Salmonella numbers (P < 0.05) than nonintegrated companies, and white-skin carcasses had lower numbers (P < 0.05) than yellow-skin carcasses. Among 13 different Salmonella serovars identified, Paratyphi B (34.8%) was most prevalent, followed by Heidelberg (16.3%) and Derby (11.6%). Of all the Salmonella isolates, 59.2% were resistant to one to three antibiotics and 13.6% to four or more antibiotics. Among all the serovars obtained, Salmonella Paratyphi B and Heidelberg were the most resistant to the antibiotics tested. Salmonella levels and antibiotic resistant profiles among isolates from raw poultry at the retail market level were high relative to other reports from North and South America. These data can be used by Guatemalan stakeholders to develop risk assessment models and support further research opportunities to control transmission of Salmonella spp. and antibiotic-resistant isolates from chicken meat to humans.

New models of public ownership in energy

The current challenges facing the energy sector cast doubt on the universal applicability of a wholly privately-owned, competitive and independently-regulated energy industry. In this paper, we discuss these challenges and ask why it is that they have led to the emergence of new forms of public ownership and involvement. We then explore six case studies to illustrate the variety of ownership models that have developed in response to the challenges of climate change, energy security, energy poverty and the uncertainty around electricity market reform. Our case studies show that public involvement can coexist with generally liberalised electricity markets, including at the retail market level. They also demonstrate that ‘public’ ownership can take a number of forms, including mutual ownership, consumer trusts, state ownership and municipal ownership. Public organisation is on its way back in but in many new forms with many different structures. The choice is no longer between full state ownership and full private ownership. The challenge is to maintain the benefits of both and to encourage innovation in new organisational forms.

Substitutions between Fish and Seafood Products at the US National Retail Level

Abstract A non-linear AIDS model was used to estimate substitution patterns across seafood categories at the US retail market level. Results indicate that demand for catfish, crawfish, clams, and salmon products is elastic, suggesting that consumers are sensitive to price changes. In contrast, demand for shrimp and tilapia, mostly imported products, is price inelastic. US consumers would “tolerate” an increase in tilapia price compared to other seafood categories, especially catfish. Tilapia and salmon are found to have the most negative effects on purchases of other seafood products. Catfish is a strong substitute for tilapia; while tilapia is not a strong one for catfish. Promotions play significant roles in seafood purchases, especially among import-dominant products like shrimp, tilapia, and salmon. Future research should first be conducted at the metropolitan level, highlighting market specificity implied by consumers' demographics; secondly, it should be done at disaggregated levels for each seafood...

Forward Integration and Market Entry – Evidence from Natural Gas Markets for Household Customers in German

Due to potential abuse of the market power at wholesale and retail market level for natural gas the Federal Cartel Office in Germany prohibited further forward integration of gas importing firms with retail incumbents from 2005/2006 to 2010. The Authority argued that the very few dominant gas importing companies, which also own and operate the gas pipelines, could have an incentive to foreclose existing competitors or prevent potential market entry. However, two of the importing companies remained extensively forward integrated. To analyze possible forward integration issues empirically we employ cross sectional data (for September 2009) for about 500 sub markets for household customers in Germany. These submarkets have different vertical ownership structures. Our data set contains information on ownership and market entry. By applying a market entry model, which is based on the framework introduced by Bresnahan and Reiss (1991), we do not find clear evidence that market entry is restricted by forward integration of gas importers and retail incumbents.

Gender Perspectives of Action Research for Improved Rice Value Chain in Northern Guinea Savanna, Nigeria

This paper aimed at determining the gender disparity along the rice value chain in Northern Guinea Savanna of Nigeria. 250 farmers were selected by stratified random technique from five villages in Katsina State of Nigeria. Data obtained by structured interview and focus group discussion methods were analyzed by descriptive statistics and gross margin techniques. Gross margin profit was significant for male farmers (t-statistics =10.628) but not for female farmers (t-statistics = 1.262) at 5 percent level. The rates of return on capital were 0.847, 0.148 and 0.601 for processing, wholesale market and retail market levels respectively. Socio-cultural factors confining women to indoor activities constrained their access to production inputs, processing facilities and market. Improved access of farmers to inputs, and women in particular to processing facilities and skills would promote production of good quality rice in the study area.

Prevalence and serotyping of Listeria monocytogenes in Portuguese live bivalve molluscs sampled in various steps along the sanitary control process

The prevalence and contamination levels of Listeria monocytogenes were investigated in live bivalve molluscs for human consumption, collected in various steps of the commercial and sanitary circuits in the North of Portugal. Samples of different species were collected per lot before and after depuration treatment in two depuration units and further, when placed in retail markets. Listeria monocytogenes was isolated from 4% of the samples although with very low contamination levels (less than 100 MPN g−1). None of the environmental (non-depurated) samples were contaminated with the food-borne pathogen. The positive samples involved depurated and commercialized samples from two lots, one in each circuit. Two serotypes (1/2a and 3b) were detected among the isolated strains. This study demonstrated the possibility of occurrence of L. monocytogenes contamination of live bivalve molluscs along the sanitary control circuit, including at the retail market level. As L. monocytogenes grows well at refrigerated temperatures and in high salt matrixes such as seafood its presence in these products should not be overlooked.

Testing the Quality-Price Relations in Parmigiano and Padano Cheese Markets

The purpose of this article was to prove the existence of quality-price relations among Parmigiano and Padano Cheese markets and explain their consequences in terms of marketing strategies using the quality as a factor to affect the customer's choices at different market levels. A statistical analysis, based on cointegration and Granger causality, was used to test the existence of these relations within the chain and across the two chains. The results suggested the evidence of cross price cointegration between Parmigiano and Padano prices at the wholesale market level, but this condition was not confirmed when testing the chain cointegration between wholesale and retail market levels for the same product. The conclusion was that at the wholesale level, the commercial quality of Padano led the market and the pricing strategy was dictated by the Padano's operators. Between wholesale and retail, there was not a clear quality-price leadership effect in both the Parmigiano and Padano markets. At the retail market level, the effect of marketing mix strategies of a large chain targeted to maximize the sales of both products using different strategies faded the effect of the industrial quality.

Quality criteria, expiration period and marketing loss estimations of pre-treated and cold stored mullet fish.

Monitoring of protein breakdown products and lipid autoxidation in farmed mullet fish as a function of a proposed treatments prior to chilling process at 3 °C ± 1 was carried out. Furthermore, sensory evaluation of three investigated treatments, whole mullet fish (RM)-eviscerated and soaked in distilled water (WSRM)-eviscerated and soaked in a solution containing 5% K-sorbate + 5% Na 4 P 2 O 7 + 2% Na-citrate + 0.2% ascorbic acid (SSRM), were followed during chilling storage. Estimation of the predicted length of cold storage period as well as the marketing losses of the marketable mullet fish was also elucidated. The marketing losses of mullet fish at whole or retail market levels were also estimated by using a pre-tested questionnaire. Total volatile basic nitrogen (TVB-N) and trimethylamine nitrogen (TMA-N) increased concomitantly during cold storage of differently treated mullet fish. Moreover, lipid oxidation and hydrolysis products were followed by determining peroxide value (PV), thiobarbituric acid reactive substances (TBARS) and ratio of absorbance (A 400 /A 450 ) as well as acid value (AV) and free volatile fatty acids (FVFA). Mostly, these parameters show upward trend with different rates depending on the applied treatment. Soaking treatment greatly retarded fish spoilage during cold storage. As regards, SSRM samples withstand spoilage up to about 15 days compared to only 8 and 9 days for both RM and WSRM samples, respectively.

The Economic Consequences of the Minnesota Dairy Industry Unfair Trade Practices Act

THE increasing importance of the oligopolistically competitive market structure raises a question as to what effects various types of antitrust and trade practice regulations have upon the conduct and performance of firms operating in oligopolistically competitive markets. It is frequently assumed that antitrust and trade practice laws are designed to have the effect of stimulating competition among firms in the relevant market. This assumption may, however, not be warranted in the case of certain state and federal trade practice regulations which may actually have the effect of suppressing rather than stimulating competition among oligopolistically competitive firms. Laws which are suspect of suppressing rather than stimulating competition are the state and federal price discrimination, sales below cost, and fair trade laws. In this paper these laws will be referred to as unfair trade practice regulations. Unfair trade practice regulations are widespread. Thirty-eight states have fair trade laws; 29 states have general price discrimination laws; 48 states have special interest price discrimination laws which apply to products such as insurance, dairy products, liquor, or petroleum; 28 states have general sales below cost laws which may apply to either the manufacturer, wholesale, or retail market levels; and 29 states have special interest sales below cost laws which apply most frequently to products such as cigarettes and dairy products.' At the federal level the McGuire Act which sanctions state fair trade laws and thus sanctions, under certain conditions, resale price maintenance qualifies as an unfair trade practice law. Also at the federal level recent court decisions such as Utah Pie Co. v. Continental Baking Co.2