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Price formation on the Marseille fish market: Evidence from a network analysis

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  • Vignes, Annick
  • Etienne, Jean-Michel

Abstract

The empirical analysis of fish markets always reveals strong price dispersion for homogeneous or very similar goods. The problem is how to explain this price dispersion on a market where there is no evident arbitrage. Explanations proposed by different authors include differences in organization, the characteristics of the good, and the influences of social interactions between buyers and sellers. In line with the last of these three approaches, we consider the fish market of Marseille as a seller–seller network. We start by examining the influence of market interactions, through a static and then a dynamic econometric model. We then analyze the role of the seller’s position in the network. We bring to light a surprising paradox, in that the sellers who share the most buyers with competitors (i.e. the most central sellers) charge the highest prices.

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  • Vignes, Annick & Etienne, Jean-Michel, 2011. "Price formation on the Marseille fish market: Evidence from a network analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 50-67.
    • Handle: RePEc:eee:jeborg:v:80:y:2011:i:1:p:50-67
    DOI: 10.1016/j.jebo.2011.07.003
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    2. Laurent Gobillon & François Charles Wolff & Patrice Guillotreau, 2013. "Evaluating the law of one price using micro panel data," PSE Working Papers halshs-00849075, HAL.
    3. Sylvain Mignot & Stéphanie Saba & Annick Vignes, 2016. "To trust or to bid: an empirical analysis of social relationships on a fish market," Working Papers halshs-01298872, HAL.
    4. Stein Ivar Steinshamn, 2017. "Predators in the market: implications of market interaction on optimal resource management," Journal of Bioeconomics, Springer, vol. 19(3), pages 327-341, October.
    5. Ali Ellouze & Bastien Fernandez, 2023. "Dynamics of buyer populations in fresh product markets," Papers 2311.03987, arXiv.org, revised Jul 2024.
    6. Wolff, François-Charles & Asche, Frank, 2022. "Pricing heterogeneity and transaction mode: Evidence from the French fish market," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 67-79.
    7. Murray, Cameron K., 2012. "Markets in political influence: rent-seeking, networks and groups," MPRA Paper 42070, University Library of Munich, Germany.
    8. Nasuelli, Piero & Clemente, Flavia & Baggio, Rodolfo & Berruto, Remigio & Busato, Patrizia, 2015. "Supply Chains of Products of Animal Origin: A Complex Network Model for Strategic Management," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 6(4), pages 1-11, October.
    9. Karpf, Andreas & Mandel, Antoine & Battiston, Stefano, 2018. "Price and network dynamics in the European carbon market," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 103-122.
    10. Frédéric Salladarré & Patrice Guillotreau & Patrice Loisel & Pierrick Ollivier, 2015. "The declining price anomaly in sequential auctions with asymmetric buyers: Evidence from the Nephrops norvegicus market in France," Working Papers hal-01147207, HAL.
    11. Sylvain Mignot & Annick Vignes, 2019. "Trust somebody but choose carefully : an empirical analysis of social relationships on an exchange market," Working Papers hal-02005026, HAL.
    12. Emiliano Brancaccio & Raffaele Giammetti & Milena Lopreite & Michelangelo Puliga, 2023. "Convergence in solvency and capital centralization: A B‐VAR analysis for high‐income and euro area countries," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 40-73, February.
    13. Laura Hernández & Annick Vignes & Stéphanie Saba, 2018. "Trust or robustness? An ecological approach to the study of auction and bilateral markets," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-14, May.
    14. González-Mon, Blanca & Bodin, Örjan & Crona, Beatrice & Nenadovic, Mateja & Basurto, Xavier, 2019. "Small-scale fish buyers' trade networks reveal diverse actor types and differential adaptive capacities," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    15. Laura Hernandez & Annick Vignes & Stéphanie Saba, 2018. "Trust or robustness? An ecological approach to the study of auction and bilateral markets," Post-Print hal-02005040, HAL.
    16. François-Charles Wolff & Frédéric Salladarré & Laurent Baranger, 2024. "A classification of buyers in first-sale fish markets: Evidence from France," Post-Print hal-04586532, HAL.

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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