Retail Price Changes Research Articles

Kazakhstan dairy market: guidelines for optimization

Milk plays an important role in human life as obligatory and necessary food product, containing the most valuable and easily digestible proteins, fats, carbohydrates, and minerals. The goal is to show the current state of dairy industry in Kazakhstan, factors influencing its development. The economic parameters of production of milk and dairy products, dynamics of production volumes, and the number of cattle by type of management have been studied. The methods are based on the study of domestic and analytical reviews, scientific publications, and statistical information. Results – there is a shortage of raw materials for processing enterprises, their low quality, and a large number of small producers. The authors state that homemade milk from private farms does not meet technological standards, which, in turn, is the reason for poorquality industrial processing of raw materials. Domestic producers satisfy the need only for liquid processed milk and cream (94.9%). Conclusions – indicators that have restraining effect on development of dairy industry in the republic are considered, the need for technological reequipment, formation of cluster structures, and state support for Kazakh producers is pointed out. Compliance with raw milk quality standards is only possible when using the latest methods for obtaining and primary processing of raw milk. To achieve an effect, subsidies for technical equipment are required, especially for small-scale farms (milking and refrigeration machines, disinfectants, express control analyzers, etc.). Forecasts for consumption of dairy products assume the ability to determine in the future the volumes and structure of market demand for this type of product. The fundamental factors are the level of income, trends in changes in retail prices, degree of market saturation, national and historical traditions.

Stochastic Modeling of Wind Derivatives with Application to the Alberta Energy Market

Wind-power generators around the world face two risks, one due to changes in wind intensity impacting energy production, and the second due to changes in electricity retail prices. To hedge these risks simultaneously, the quanto option is an ideal financial tool. The natural logarithm of electricity prices of the study will be modeled with a variance gamma (VG) and normal inverse Gaussian (NIG) processes, while wind speed and power series will be modeled with an Ornstein–Uhlenbeck (OU) process. Since the risk from changing wind-power production and spot prices is highly correlated, we must model this correlation as well. This is reproduced by replacing the small jumps of the Lévy process with a Brownian component and correlating it with wind power and speed OU processes. Then, we will study the income of the wind-energy company from a stochastic point of view, and finally, we will price the quanto option of European put style for the wind-energy producer. We will compare quanto option prices obtained from the VG process and NIG process. The novelty brought into this study is the use of a new dataset in a new geographic location and a new Lévy process, VG, apart from NIG.

Analysis of the range, economic availability and volume of consumption of antiestrogens for the hormone therapy of ER(+) HER2(−) breast cancer

Aim. To study the range, economic availability and consumption volumes of antiestrogens for the hormone therapy of ER(+) HER2(−) breast cancer.
 Materials and methods. The retrospective analysis of the range, as well as the analysis of changes in average retail prices, economic availability and consumption volumes of hormone therapy for ER(+) HER2(−) breast cancer presented at the pharmaceutical market of Ukraine in 2017-2022 were performed.
 Results. At the pharmaceutical market of Ukraine in 2017-2022, 3 INNs of anti-estrogens were presented during the entire period under study: tamoxifen (L02B A01), toremifene (L02B A02) and fulvestrant (L02B A03). The value of the solvency adequacy ratio (Ca.s.) of the population for each drug under research decreased at the end of the study period. For almost every trade name (TN) of the drugs studied during individual years, the Ca.s. indicator was slightly higher than in the previous period, but this was not systemic in nature and did not affect the general trend of decreasing Ca.s., which, in turn, indicated an increase in the affordability of all TN of antiestrogens studied for an average citizen of Ukraine. There is an overall clear trend towards a year-on-year decrease in the consumption of anti-estrogens mainly due to a decrease in the consumption of tamoxifen drugs, but there is a steady trend towards an increase in the consumption of fulvestrant.
 Conclusions. At the pharmaceutical market of Ukraine within 2017-2022, anti-estrogens for the hormone therapy of ER(+) HER2(–) breast cancer were presented by 3 INNs: tamoxifen, toremifene and fulvestrant. It has been found that for almost all drugs studied there is a steady trend towards increasing economic availability due to an increase in average wages, despite an increase in average retail prices. A trend towards a decrease in the consumption of drugs from the group of anti-estrogens has been determined mainly due to a decrease in the consumption of tamoxifen drugs.

Gentrification and retail churn: Theory and evidence

How does gentrification transform neighborhood retail amenities? This paper presents a model in which gentrification harms incumbent residents by increasing rental costs and by eliminating distinctive local stores. While rising rents can be offset with targeted transfers, the destruction of neighborhood character can – in principle – reduce overall social surplus. Empirically we find that gentrifying neighborhoods experience faster growth in both the number of retail establishments and business closure rates than their non-gentrifying counterparts. However, we see little evidence that gentrification is associated with changes in retail mix or prices — suggesting limited welfare losses.

Effects of Diesel Price on Changes in Agricultural Commodity Prices in Bulgaria

The aim of this article is to supply the first empirical research inspecting how changes in diesel prices influence the prices of four agricultural commodities in Bulgaria. For this purpose, using a VECM and monthly agricultural commodity prices between January 2011 and July 2022, we estimated short-run and long-run changes in producer and retail prices of cow’s milk, chicken eggs, greenhouse tomatoes and cucumbers due to the change in average monthly diesel prices. The Granger causality test indicates that diesel prices cannot be used to forecast the behavior of producer and retail prices in the four markets considered. Diesel prices can be used to forecast the behavior of producer prices in only the cow’s milk market, and the diesel price predicts retail prices in the chicken egg and greenhouse cucumber markets. The results of the response of the researched prices of agricultural commodities to diesel price shocks indicate a positive response of both upstream and downstream prices of cow’s milk and chicken egg markets and upstream prices of the greenhouse tomato market despite the initial negative shock.

Price transmission asymmetry of selected fishes in Bangladesh: An econometric and value chain analysis

Learning the extent of price volatility is critical to ensure the producer and consumer’s economic welfare. Hence, we have envisioned assessing the price transmission relationship over time among the farmgate, wholesale, and retail markets for the four major aquaculture products, namely Rui, Catla, Tilapia and Pangas in Bangladesh. The Granger causality test examined the causal relationships among the farmgate, wholesale and retail fish prices. The Houck/Ward and error correction approach was also applied to study their price transmission pattern. Results indicate that the retail price leads the wholesale and farmgate price. In most cases, the coefficient of variation decreases as the fish handover from the farmgate to retail levels. Out of 15 pairs of farmgate, wholesale, and retail price-series analyzed, 14 pairs are co-integrated (p < 0.01). Current results also suggest that the price transmission pattern is symmetric in the short run but could be a mixture of symmetric and asymmetric in the long run. This asymmetric price behavior indicates that changes in retail prices do not get reflected fully at both farmgate and wholesale prices, and the transmitted prices may vary according to the retail prices based on their rising or falling pattern.

쌀 가격의 유통단계별 인과성과 비대칭적 가격 전이 검정

This study empirically analyzes the asymmetric price transfer of rice under the assumption that the degree of price response in the production stage could be reduced or expanded without being constantly transferred to the wholesale or retail stage due to costs and processing occurring in the distribution process. we first analysis the causality of the wholesale price and retail price of rice, and determine the time lag in which the price of rice is transferred from the wholesale market to the retail market. In addition, we analyze asymmetric price transmission to determine whether the rice distribution market is inefficient. In the result, the time lag is estimated to be about 10 to 30 days. Furthermore, the analysis result shows that there is positive asymmetric price transmission in the wholesale-retail market. This result can be interpreted as a high probability of a retailer''s excess profit, meaning that changes in retail prices are more sensitive when wholesale prices increase than when the wholesale prices decreases. These results suggest that improvement of the rice distribution system needs to be approached not only at the production-wholesale stage but also at the retail-wholesale stage. In other words, if an efficient retail price is determined through strengthening monitoring system of retail prices, we can expect that the more efficient distribution structure in rice market.

Food prices and marketing margins during the COVID-19 pandemic: Evidence from vegetable value chains in Ethiopia.

It is widely feared that the shock of the COVID‐19 pandemic will lead to a significant worsening of the food security situation in low and middle‐income countries. One reason for this is the disruption of food marketing systems and subsequent changes in farm and consumer prices. Based on primary data in Ethiopia collected just before the start and a few months into the pandemic, we assess changes in farm and consumer prices of four major vegetables and the contribution of different segments of the rural‐urban value chain in urban retail price formation. We find large, but heterogeneous, price changes for different vegetables with relatively larger changes seen at the farm level, compared to the consumer level, leading to winners and losers among local vegetable farmers due to pandemic‐related trade disruptions. We further note that despite substantial hurdles in domestic trade reported by most value chain agents, increases in marketing—and especially transportation—costs have not been the major contributor to overall changes in retail prices. Marketing margins even declined for half of the vegetables studied. The relatively small changes in marketing margins overall indicate the resilience of these domestic value chains during the pandemic in Ethiopia.

National model of state price regulation: a microeconomic approach

In the system of national public administration, the practices of regulating economic processes in general and prices in particular are approved. Consumers are also "in favour of" such actions by the state, as they associate them with consumer support. Government Resolution №341 of 22.04.2020 “On Measures to Stabilize Prices for Goods…” introduced state regulation of prices by declaring changes in retail prices for goods of “social significance”. This list contains goods where markets are different in their competitive nature, so it is not possible to regulate them by the same method. The necessity of price regulation measures, even for a limited list of goods, is the subject of this article. In case of perfect competition, firms that produce, for example, buckwheat, granulated sugar, wheat flour accept the market price, hence government regulation will lead to a deficit / surplus. Activities of producers of pasta of domestic production (vermicelli from premium wheat flour), pasteurized milk with fat content of 2.5 percent (in the film), rye-wheat bread, belong to the monopolistic competition. Typically, their activities are self-sustaining (break-even), hence administrative price decrease will lead to a reduction in production with all associated consequences. Markets of chicken eggs of category C1, poultry (chicken carcass), still mineral water, butter with fat content of 72.5 percent, in microeconomics are "oligopolies", which suggests interdependence in pricing. Therefore, producers themselves "disapprove" state intervention that violates competitive conditions. Natural gas and electricity markets are monopolized. The tool to reduce prices is to expand the number of market operators. To this end, an alternative to state regulation of prices is further development of a competitive environment and entrepreneurship

РОЗНИЧНЫЕ ЦЕНЫ НА БЕНЗИН В МОСКВЕ В ПЕРИОД ПАНДЕМИИ COVID-19

The article is devoted to the analysis of retail gasoline prices in Moscow in the period after the start of the spread of coronavirus infection. We analyze the statistical data on changes in wholesale and retail prices for the main brands of gasoline and diesel fuel during the pandemic. Empirical data reveal the effect of the damper price regulation mechanism, which makes it possible to soften the reaction to sharp fluctuations in world oil prices. It is shown that positive and negative price shocks in the world oil market during the pandemic smoothed out at the level of wholesale prices for oil products in Russia, and practically neutralized at the level of retail prices.

Price volatility and price transmission in perishable commodity markets: evidence from Chinese lychee markets

ABSTRACTThis paper examines price volatility and price transmission in lychee markets in China. The empirical results provide strong evidence of price volatility clustering in farm and retail markets, and the farm prices exhibit negative asymmetric volatility. We find a bi-directional Granger causal relationship between farm prices and retail prices. The impulse analysis shows that the retail price responses to farm price shocks reach the maximum value faster than the farm price responses to retail price shocks. Retail price shocks cause larger short-run positive effects on farm prices. The variance decomposition indicates that the long-run effects of retail price shocks on farm price changes are larger than the effects of farm price shocks on retail price changes.

On the Effects of Suggested Prices in Gasoline Markets

AbstractThere is a widespread suspicion that suggested prices act as a focal point for individual firms when setting their prices. Oil companies announce suggested prices for gasoline stations in the Dutch retail market. We show that, compared to the gasoline spot market price, suggested prices contain additional information that explains retail price changes. We conclude that suggested prices have a horizontal coordinating effect in the sense that retail prices react to information that suggested prices contain and that is unrelated to firms’ costs (i.e., the information that firms use under normal competitive conditions).

IMPACT OF CHANGES IN AGRICULTURAL COMMODITY PRICES ON CHANGES IN RETAIL PRICES OF AGRI-FOOD PRODUCTS IN POLAND IN 2007–2016

This paper presents the impact of changes in prices of agricultural products on changes in retail prices of agrifood products. The basis for the study was data on changes in prices of milk, wheat, pork and poultry and derived products in Poland in 2007–2016. A relationship was discovered between the variables, on one side, and lags between the examined time series, on the other. The cross-spectral analysis was used to study the periodicity of changes and lags between time series.

Identifying Financially Sustainable Pricing Interventions to Promote Healthier Beverage Purchases in Small Neighborhood Stores.

IntroductionResidents of low-income communities often purchase sugar-sweetened beverages (SSBs) at small, neighborhood “corner” stores. Lowering water prices and increasing SSB prices are potentially complementary public health strategies to promote more healthful beverage purchasing patterns in these stores. Sustainability, however, depends on financial feasibility. Because in-store pricing experiments are complex and require retailers to take business risks, we used a simulation approach to identify profitable pricing combinations for corner stores.MethodsThe analytic approach was based on inventory models, which are suitable for modeling business operations. We used discrete-event simulation to build inventory models that use data representing beverage inventory, wholesale costs, changes in retail prices, and consumer demand for 2 corner stores in Baltimore, Maryland. Model outputs yielded ranges for water and SSB prices that increased water demand without loss of profit from combined water and SSB sales.ResultsA 20% SSB price increase allowed lowering water prices by up to 20% while maintaining profit and increased water demand by 9% and 14%, for stores selling SSBs in 12-oz cans and 16- to 20-oz bottles, respectively. Without changing water prices, profits could increase by 4% and 6%, respectively. Sensitivity analysis showed that stores with a higher volume of SSB sales could reduce water prices the most without loss of profit.ConclusionVarious combinations of SSB and water prices could encourage water consumption while maintaining or increasing store owners’ profits. This model is a first step in designing and implementing profitable pricing strategies in collaboration with store owners.

An analysis of asymmetric consumer price responses and asymmetric cost pass-through in the French coffee market

We analyze empirically a possible channel for the existence of asymmetric price-cost pass-through, that is, of prices responding differently to negative and positive upstream cost shocks. While asymmetric price-cost pass-through has been documented in many markets, possible causes for such a phenomenon have not empirically investigated. Using consumer panel data in the coffee retail sector in France, we estimate a demand model structurally allowing for asymmetric consumer responses to positive and negative retail price changes. According to the demand estimates, we indeed Þnd signiÞcant evidence that consumers react differentially to positive and negative price movements, in that demand is less sensitive (elastic) to price increases than to price decreases. Then using counterfactual simulations within an equilibrium model of demand and supply side behavior we empirically investigate to what extent the existence of the estimated demand asymmetries contributes to asymmetric responses of equilibrium prices of imperfectly competing Þrms given upstream negative and positive cost shocks. We do so by simulating positive and negative costs shocks, given the estimated demand model with asymmetric demand responses. We compare the changes in prices to changes in prices resulting from the same magnitude of cost shocks in an alternative demand structure without demand asymmetries. Our Þndings suggest that not allowing for asymmetries in demand imply similar magnitudes of simulated price-cost pass-through rates. However, when allowing there to be demand asymmetries, a positive cost shock is passed through to a larger degree to retail prices than a negative cost shock of the same magnitude. Our Þndings imply that the shape of the demand explains observed asymmetric price transmission of cost shocks in the context of imperfectly competitive markets

Changes in Retail Prices of Prescription Dermatologic Drugs From 2009 to 2015.

Physicians from many specialties as well as primary care prescribe dermatologic medications; as insurance formularies become increasingly restrictive and more patients are covered with high-deductible insurance plans, many patients are forced to pay high retail prices to obtain their medications. To determine the changes in the prices of commonly prescribed dermatologic medications since 2009 and to identify trends in price increases for different classes of drugs. Four national chain pharmacies received surveys requesting price data on commonly prescribed dermatologic drugs in 2009, 2011, 2014, and 2015. The initial survey requested information on 72 brand-name drugs. Subsequent surveys increased to eventually include 120 additional brand-name drugs and their generic alternatives when available. Owing to the frequency of prescription, diseases treated, or unusual price increases, 19 brand-name drugs surveyed in all 4 years were selected for final price trend analysis, which was conducted from August 1 to 15, 2015. Retail prices of topical and systemic drugs for the treatment of various dermatologic conditions. Prices of surveyed brand-name drugs increased rapidly between 2009 and 2015. Of the 19 brand-name drugs analyzed, the retail prices of 7 drugs more than quadrupled during the study period. Among these 19 drugs, the mean price increase was 401% during the 6-year survey period, with the majority of the price increases occurring after 2011. Prices of topical antineoplastic drugs had the greatest mean absolute and percentage increase ($10,926.58 [1240%]). Prices of drugs in the antiinfective class had the smallest mean absolute increase ($333.99); prices of psoriasis medications had the smallest mean percentage increase (180%). Prices of acne and rosacea medications increased a mean of 195%, and prices of topical corticosteroids increased a mean of 290% during the study period. Selected generic drugs surveyed in 2011 and 2014 also increased a mean of 279% during the 3-year period. The price of prescription dermatologic drugs rose considerably from 2009 to 2015, with the vast majority of price increases occurring after 2011. Percent increases for multiple, frequently prescribed medications greatly outpaced inflation, national health expenditure growth, and increases in reimbursements for physician services.

MEKANISME TRANSMISI HARGA INTERNASIONAL DALAM RANGKA PENETAPAN KEBIJAKAN HARGA OLEH PEMERINTAH TERHADAP BEBERAPA KOMODITAS HASIL PERTANIAN TERTENTU

This study aimed to analyze the mechanism of transmission of international prices in the context of preparing the government's policy of controlling prices through the pricing of certain agricultural commodities. This price control in order to ensure stability of prices of agricultural commodities so as to support and ensure the economic stability. The analytical tool used is regression to the data period used was May 2009 to December 2013. The results showed that the increase in retail price increases in producer prices which indicates that the market red peppers, chicken meat and fresh fish are not integrated perfectly. Variation changes in retail prices is a source of variation and the producer price changes have a significant relationship between producer prices at retail prices. Changes in retail prices is not transmitted completely to the producer price which the retail price increases pushed up producer prices.

Price Stickiness: Empirical Evidence of the Menu Cost Channel

Abstract A leading explanation in the economic literature is that monetary policy has real effects on the economy because firms incur a cost when changing prices. Using a unique database of cost and retail price changes, we find that variation in menu costs results in up to 13.3% fewer price increases. We confirm that these effects are allocative and have a persistent impact on both prices and unit sales. We provide evidence that the menu cost channel operates only when cost increases are small in magnitude, which is consistent with theory and provides the first empirical evidence of boundary conditions.

Price Monitoring of Socially Significant Groceries: A Results Review of Two Research Waves

The social stability problem and living standards of the poorest groups of the population largely depend on the level of food prices. An important question arises when the state is being involved in the process of food prices control: Will the be able to stabilize the prices without assistance at a level affordable for the poor? In this article, the authors present the results of two waves of research of the changes in minimum retail prices for socially important food products in Russia. The obtained results show that the average minimum price for basic foods—the market basket—and their volatility reduce. Thus, the authors conclude that the economic crisis in Russia has slowed down. A comparative study of the monthly cost of the basket for the poor was carried out based on the average prices obtained by the Federal State Statistics Service and the average minimum prices obtained in the study demonstrates a significant difference in the cost. The obtained results allow concluding that a separate monitoring of minimum prices is required for more relevant reflection of the minimum “market basket” cost. DOI: 10.5901/mjss.2015.v6n5s4p242

Price Transmission and Threshold Behavior in the African Catfish Supply Chain in Uganda

The issue of price linkage in the catfish supply chain in Uganda is important because catfish has become an important traded species with exports to regional markets rising even faster than production, yet limited research has been undertaken to understand the linkages and the non-linearity in the price transmission mechanism. This paper explores the issue using monthly price data from January 2006 to August 2013, and applies threshold autoregressive approaches to test for the existence of a long-run relationship and price asymmetry. The results show that prices in the catfish value chain are tied together by a long-run relationship. It is also revealed that ex-vessel and wholesale price adjustments to retail price changes are symmetric while ex-vessel price adjustments to wholesale price changes are shown to be asymmetric. The direction of causal relationships was observed from the retail to the wholesale and ex-vessel markets, indicating that retailers are the price leaders in the Uganda catfish supply chain.