IDEAS home Printed from https://ideas.repec.org/a/ids/ijcome/v1y2010i3-4p294-308.html
   My bibliography  Save this article

Testing for market power in the Spanish meat market: price transmission elasticity and asymmetry using econometric models

Author

Listed:
  • Jordi Guillen
  • Ramon Franquesa

Abstract

This paper pays attention to the Spanish fresh meat market, by analysing how the different stages of the market chain interact and so, investigating the presence of market power. In this paper, we use weekly data for the period 2005-2007, to examine the presence of market power in the meat market. In particular, we analyse the price transmission elasticity and the price transmission asymmetry for fresh beef, pork, lamb, chicken, rabbit and eggs between the farm and retail market stages in Spain. Price causality analysis confirms that, in the short run, upstream level (producer) led to changes in the downstream level (retail). Furthermore, for all products it can be observed that when the producer price decreases, the retail price decreases less than proportional; hence, the retail price increases less than proportional. Therefore, market power does not seem to explain this asymmetry, because the second behaviour contradicts the market power perception. Therefore, it seems that lower volatility in the retail market stage – which may be due to the higher number of available substitutes and sources and higher repricing costs – explains the asymmetric price transmission.

Suggested Citation

  • Jordi Guillen & Ramon Franquesa, 2010. "Testing for market power in the Spanish meat market: price transmission elasticity and asymmetry using econometric models," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 1(3/4), pages 294-308.
    • Handle: RePEc:ids:ijcome:v:1:y:2010:i:3/4:p:294-308
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=37939
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bakucs, Lajos Zoltan & Falkowski, Jan & Ferto, Imre, 2012. "What causes asymmetric price transmission in agro-food sector? Meta-analysis perspective," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134765, Agricultural Economics Society.
    2. El Benni, Nadja & Finger, Robert & Hediger, Werner, 2014. "Transmission of beef and veal prices in different marketing channels," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182696, European Association of Agricultural Economists.
    3. Elena Claire Ricci & Massimo Peri & Lucia Baldi, 2019. "The Effects of Agricultural Price Instability on Vertical Price Transmission: A Study of the Wheat Chain in Italy," Agriculture, MDPI, vol. 9(2), pages 1-14, February.
    4. Byeong-il, Ahn & Lee, Hyunok, 2015. "Vertical Price Transmission of Perishable Products: The Case of Fresh Fruits in the Western United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-20, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijcome:v:1:y:2010:i:3/4:p:294-308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=311 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.