IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/195426.html
   My bibliography  Save this article

Price discrimination and pricing-to-market behavior of Black Sea region wheat exporters

Author

Listed:
  • Gafarova, Gulmira
  • Perekhozhuk, Oleksandr
  • Glauben, Thomas

Abstract

Substantial changes in the world wheat market have resulted in a shift in the market shares of the main wheat exporting countries. Since 2002, Kazakhstan, Russia, and Ukraine (KRU) have become important wheat exporters on the world market, and their pricing behavior has become a vital issue. By applying the pricing-to-market model to wheat exports, this study analyzes the price-discriminating behavior of KRU wheat exports from 1996 to 2012. The results demonstrate that KRU are able to exercise price discrimination in some importing countries, but in most they either face perfect competition or set common markups in imperfectly competitive markets.

Suggested Citation

  • Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "Price discrimination and pricing-to-market behavior of Black Sea region wheat exporters," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(3), pages 287-316.
    • Handle: RePEc:zbw:espost:195426
    DOI: 10.1017/aae.2015.16
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/195426/1/Gafarova_2015_price_discrimination.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1017/aae.2015.16?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Patterson, Paul M & Abbott, Philip C, 1994. "Further Evidence on Competition in the US Grain Export Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 429-437, December.
    2. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
    3. Daniel H. Pick & Timothy A. Park, 1991. "The Competitive Structure of U.S. Agricultural Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 133-141.
    4. Tothova, Monika & Meyers, William H. & Goychuk, Kateryna, 2013. "Productivity growth and variability in KRU: evidence and prospects," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152378, International Agricultural Trade Research Consortium.
    5. Daniel H. Pick & Colin A. Carter, 1994. "Pricing to Market with Transactions Denominated in a Common Currency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 55-60.
    6. Jin , Hyun J. & Miljkovic , Dragon, 2008. "Competitive Structure of U.S. Grain Exporters in the World Market: A Dynamic Panel Approach," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 12(1), pages 33-62, June.
    7. Lavoie, Nathalie & Liu, Qihong, 2007. "AJAE Appendix: Pricing-to-Market: Price Discrimination or Product Differentiation?," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(3), pages 1-7, August.
    8. Richard Carew & Wojciech J. Florkowski, 2003. "Pricing to Market Behavior by Canadian and U.S. Agri-food Exporters: Evidence from Wheat, Pulse and Apples," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(2), pages 139-159, July.
    9. Hyun Jin, 2008. "Competitive structure of Canadian wheat exports in the world market," Applied Economics Letters, Taylor & Francis Journals, vol. 15(13), pages 1059-1064.
    10. Nathalie Lavoie, 2005. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 835-854.
    11. Nathalie Lavoie & Qihong Liu, 2007. "Pricing-to-Market: Price Discrimination or Product Differentiation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 571-581.
    12. Griffith, Garry R. & Mullen, John D., 2001. "Pricing-to-market in NSW rice export markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-12.
    13. Götz, Linde & Glauben, Thomas & Brümmer, Bernhard, 2013. "Wheat export restrictions and domestic market effects in Russia and Ukraine during the food crisis," Food Policy, Elsevier, vol. 38(C), pages 214-226.
    14. Burkitbayeva, Saule & Kerr, William A., 2013. "The Accession of Kazakhstan, Russia and Ukraine to the WTO: What will it Mean for the World Trade in Wheat?," Commissioned Papers 158891, Canadian Agricultural Trade Policy Research Network.
    15. Yumkella, K. K. & Unnevehr, L. J. & Garcia, P., 1994. "Noncompetitive Pricing and Exchange Rate Pass-Through in Selected U.S. and Thai Rice Markets," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 406-416, December.
    16. Fedoseeva Svetlana, 2013. "(A)symmetry, (Non)linearity and Hysteresis of Pricing-To-Market: Evidence from German Sugar Confectionery Exports," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-17, January.
    17. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
    18. Martin Falk & Rahel Falk, 2000. "Pricing to Market of German Exporters: Evidence from Panel Data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(1), pages 21-46, March.
    19. Jeonghoi Kim, 2010. "Recent Trends in Export Restrictions," OECD Trade Policy Papers 101, OECD Publishing.
    20. Brown, Jennifer, 2001. "Price Discrimination and Pricing to Market Behavior of Canadian Canola Exports," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 1-17.
    21. Carew, Richard, 2000. "Pricing To Market Behavior: Evidence From Selected Canadian And U.S. Agri-Food Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    22. Zsombor Pall & Oleksandr Perekhozhuk & Ramona Teuber & Thomas Glauben, 2013. "Are Russian Wheat Exporters Able to Price Discriminate? Empirical Evidence from the Last Decade," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 177-196, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "An econometric analysis of market power in Azerbaijani wheat market: Evidence from Kazakhstan and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211642, International Association of Agricultural Economists.
    2. Goretzki, Philipp & Perekhozhuk, Oleksandr & Glauben, Thomas & Loy, Jens-Peter, 2019. "Price discrimination and market power in the international fertiliser market: Empirical evidence for exports from Russia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 5-24.
    3. Uhl Kerstin Marit & Perekhozhuk Oleksandr & Glauben Thomas, 2019. "Russian Market Power in International Wheat Exports: Evidence from a Residual Demand Elasticity Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(2), pages 1-13, November.
    4. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2017. "Analysis Of Oligopolistic Behaviour Of Kazakh And Russian Exporters In The South Caucasus Wheat Market," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261429, European Association of Agricultural Economists.
    5. Rahman, Mohammad Chhiddikur, 2018. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 251114, July.
    6. Balogh, J.M., 2018. "Analyzing the pricing to market behavior of the New World on EU wine market," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276995, International Association of Agricultural Economists.
    7. Imamverdiyev, Nizami & Anders, Sven & Glauben, Thomas & Perekhozhuk, Oleksandr & Prehn, Soren, 2015. "Determinants of Trade Duration of Kazakhstan's Wheat Exports," 2015 Conference, August 9-14, 2015, Milan, Italy 211788, International Association of Agricultural Economists.
    8. Philip Dawson & Matthew Gorton & Carmen Hubbard & Lionel Hubbard, 2017. "Pricing-To-Market Analysis: The Case of EU Wheat Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 301-315, February.
    9. Rahman, Mohammad Chhiddikur, 2020. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 242248, July.
    10. Svanidze, Miranda, 2020. "Spatial market efficiency of grain markets in the post-Soviet countries and implications for global food security," Studies on the Agricultural and Food Sector in Transition Economies 310043, Institute of Agricultural Development in Transition Economies (IAMO).
    11. Svanidze, Miranda, 2020. "Spatial market efficiency of grain markets in the post-Soviet countries and implications for global food security," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 96, number 96.
    12. repec:zbw:iamost:310043 is not listed on IDEAS
    13. Goretzki, Philipp & Perekhozhuk, Oleksandr & Glauben, Thomas & Loy, Jens-Peter, 2017. "Market power in the international fertiliser market: empirical evidence for exports from Russia," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261173, European Association of Agricultural Economists.
    14. Uzun, Vasily (Узун, Василий) & Svetlov, Nikolai (Светлов, Николай) & Shagaida, Natalia (Шагайда, Наталья) & Loginova, Daria (Логинова, Дарья) & Shishkina, Ekaterina (Шишкина, Екатерина), 2017. "Improvement of Mechanisms of State Regulation of the Russian Grain Market [Совершенствование Механизмов Государственного Регулирования Российского Рынка Зерна]," Working Papers 051736, Russian Presidential Academy of National Economy and Public Administration.
    15. Gulmira Gafarova & Oleksandr Perekhozhuk & Thomas Glauben, 2023. "The Oligopolistic Behavior of Kazakh and Russian Wheat Exporters in the South Caucasus: Evidence from a Residual Demand Elasticity Analysis," Journal of Industry, Competition and Trade, Springer, vol. 23(1), pages 1-32, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kerstin Uhl & Oleksandr Perekhozhuk & Thomas Glauben, 2016. "Price Discrimination in Russian Wheat Exports: Evidence from Firm-level Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 722-740, September.
    2. Philip Dawson & Matthew Gorton & Carmen Hubbard & Lionel Hubbard, 2017. "Pricing-To-Market Analysis: The Case of EU Wheat Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 301-315, February.
    3. Fedoseeva, Svetlana, 2013. "Do German exporters PTM? Searching for right answers in sugar confectionery exports," Discussion Papers 62, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    4. Páll, Zsombor, 2015. "Three essays on the Russian wheat export," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 80, number 80.
    5. Bong-Tae Kim, 2018. "Pricing Behavior for Sustainably Farmed Fish in International Trade: The Case of Norwegian Atlantic Salmon ( Salmo salar )," Sustainability, MDPI, vol. 10(12), pages 1-14, December.
    6. Poornima Varma & Akash Issar, 2016. "Pricing to market behaviour of India's high value agri-food exporters: an empirical analysis of major destination markets," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 129-137, January.
    7. Varma, Poornima & Issar Akash, 2017. "India's Horticulture Sector - A Port- Level Analysis of Onion Export Pricing," IIMA Working Papers WP2017-03-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Zsombor Pall & Oleksandr Perekhozhuk & Thomas Glauben & Sören Prehn & Ramona Teuber, 2014. "Residual demand measures of market power of Russian wheat exporters," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 381-391, May.
    9. Pall, Zsombor & Perekhozhuk, Oleksandr & Teuber, Ramona & Glauben, Thomas, 2011. "Wheat trade - does Russia price discriminate across export destinations?," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 15, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    10. Risti Permani, 2021. "FTA, Exchange rate pass‐through and export price behavior – Lessons from the Australian dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 192-221, January.
    11. Imre Ferto & Jeremias Mate Balogh, 2016. "Are the major European wine exporters able to price discriminate across their EU extra wine export destinations?," CERS-IE WORKING PAPERS 1624, Institute of Economics, Centre for Economic and Regional Studies.
    12. Lavoie, Nathalie & Liu, Qihong, 2004. "Findings Of Pricing-To-Market: Market Segmentation Or Product Differentiation?," 2004 Annual meeting, August 1-4, Denver, CO 20287, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Balogh, J.M., 2018. "Analyzing the pricing to market behavior of the New World on EU wine market," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276995, International Association of Agricultural Economists.
    14. Robyn Swift, 2004. "The pass‐through of exchange rate changes to the prices of Australian exports of dairy and livestock products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 159-185, March.
    15. Goretzki, Philipp & Perekhozhuk, Oleksandr & Glauben, Thomas & Loy, Jens-Peter, 2019. "Price discrimination and market power in the international fertiliser market: empirical evidence for exports from Russia," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 5(2), June.
    16. Fedoseeva, Svetlana & Werner, Laura M., 2014. "Questionning pricing-to-market linearity: partial sum decomposition approach applied to beer exports," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182784, European Association of Agricultural Economists.
    17. Svetlana Fedoseeva & Laura M. Werner, 2014. "Asymmetry and Hysteresis: Two Perspectives on Pricing-to-Market Nonlinearity," Working Papers 2014.02, International Network for Economic Research - INFER.
    18. Svetlana Fedoseeva & Laura M. Werner, 2016. "How linear is pricing-to-market? Empirical assessment of hysteresis and asymmetry of PTM," Empirical Economics, Springer, vol. 50(3), pages 1065-1090, May.
    19. Gervais, Jean-Philippe & Larue, Bruno, 2006. "A Joint Test of Price Discrimination, Menu Cost and Currency Invoicing," MPRA Paper 565, University Library of Munich, Germany.
    20. Saghaian, Sayed H. & Reed, Michael R., 2004. "Integrating Marginal Cost into Pricing-to-market Models for U.S. Agricultural Products," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 5, pages 1-17, July.

    More about this item

    Keywords

    fixed-effects model; markup pricing; price discrimination; pricing-to-market; wheat export;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    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:zbw:espost:195426. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.