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Price asymmetry and marketing margin behavior: An example for California-Arizona citrus

Author

Listed:
  • Daniel H. Pick

    (Department of Agricultural Economics, University of California, Davis)

  • Jeffrey Karrenbrock

    (Department of Agricultural Economics, University of California, Davis)

  • Hoy F. Carman

    (Department of Agricultural Economics, University of California, Davis)

Abstract

The formal relationship between price asymmetry and marketing margins is derived and illustrated with a weekly analysis of prices and margins for fresh lemons and Navel oranges in four retail markets. In the short-run, retail prices and margins for both products were more responsive to f.o.b. price increases than they were to decreases, except for lemons in the Atlanta and Dallas markets and Navel oranges in the Atlanta market. Over time, retail price and margin adjustments to f.o.b. price changes appear to be symmetric with respect to price increases and decreases.

Suggested Citation

  • Daniel H. Pick & Jeffrey Karrenbrock & Hoy F. Carman, 1990. "Price asymmetry and marketing margin behavior: An example for California-Arizona citrus," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 75-84.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:1:p:75-84
    DOI: 10.1002/1520-6297(199001)6:1<75::AID-AGR2720060108>3.0.CO;2-P
    as

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    References listed on IDEAS

    as
    1. Dale M. Heien, 1980. "Markup Pricing in a Dynamic Model of the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 10-18.
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    3. Henry W. Kinnucan & Olan D. Forker, 1987. "Asymmetry in Farm-Retail Price Transmission for Major Dairy Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 285-292.
    4. Babb, E. M. & French, B. C. & Hallberg, M. C. & Hayenga, Marvin L. & Padberg, D. I. & Polopolus, L. C., 1985. "Research and Agricultural Marketing," Staff General Research Papers Archive 11593, Iowa State University, Department of Economics.
    5. Rudolf Wolffram, 1971. "Positivistic Measures of Aggregate Supply Elasticities: Some New Approaches—Some Critical Notes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(2), pages 356-359.
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