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Impact of municipality-run discount stalls on price formation across the food supply chain

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  • Akgunduz, Yusuf Emre
  • Ozcan-Tok, Elif

Abstract

When food inflation reached high levels in 2018 in Turkey, municipality-run discount stalls were introduced in Istanbul and Ankara to lower consumer prices. These stalls create a short food supply chain (SFSC) by eliminating intermediaries between producers and consumers. In this study, using a regression discontinuity design (RDD), we analyze the impact of municipality-run discount stalls on the price formation in each level of fresh fruits and vegetables supply chain: producers, wholesale markets, retailers and outdoor farmers markets. In line with the policy intentions, retail prices fell significantly after implementation. On the other hand, the additional retail demand appears to have increased producer and wholesale prices.

Suggested Citation

  • Akgunduz, Yusuf Emre & Ozcan-Tok, Elif, 2024. "Impact of municipality-run discount stalls on price formation across the food supply chain," Food Policy, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:jfpoli:v:125:y:2024:i:c:s0306919224000563
    DOI: 10.1016/j.foodpol.2024.102645
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    Keywords

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    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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