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The Farm-Wholesale Price Spread In An Imperfectly Competitive Market: A Dynamic Approach

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  • Herrera, Jose E.

Abstract

The time series properties of the farm-wholesale price spread are used to generate conjectural elasticities, measuring marketing firms' market power in a commodity market. Results show that dynamic models improve upon traditional static models by capturing intertemporal supply and prices effects. Efficiency gains of the estimates are also observed.

Suggested Citation

  • Herrera, Jose E., 1998. "The Farm-Wholesale Price Spread In An Imperfectly Competitive Market: A Dynamic Approach," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20859, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:20859
    DOI: 10.22004/ag.econ.20859
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    References listed on IDEAS

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    1. Garth J. Holloway, 1991. "The Farm-Retail Price Spread in an Imperfectly Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 979-989.
    2. Eckstein, Zvi, 1984. "A Rational Expectations Model of Agricultural Supply," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 1-19, February.
    3. Geroski, Paul A, 1988. "In Pursuit of Monopoly Power: Recent Quantitative Work in Industrial Economics," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 3(2), pages 107-123, April.
    4. John Schroeter & Azzeddine Azzam, 1991. "Marketing Margins, Market Power, and Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 990-999.
    5. Richard T. Rogers & Richard J. Sexton, 1994. "Assessing the Importance of Oligopsony Power in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1143-1150.
    6. Hansen, Lars Peter & Singleton, Kenneth J, 1982. "Generalized Instrumental Variables Estimation of Nonlinear Rational Expectations Models," Econometrica, Econometric Society, vol. 50(5), pages 1269-1286, September.
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    Keywords

    Demand and Price Analysis;

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