IDEAS home Printed from
   My bibliography  Save this paper

Markup pricing in the context of a violent conflict: differentiated apples in Hebron wholesale market


  • Ihle, Rico
  • Finkelshtain, Israel
  • Rubin, Ofir David


We investigate whether hostile international relations in the framework of the ongoing Israeli-Palestinian conflict has an effect on pricing and consumption patterns of different varieties of apples marketed in Palestine. For this purpose, we employ a discrete choice equilibrium model with product differentiation. Results suggest that the intensity level of the conflict has a positive (negative) effect on demand (price elasticity and markups). It is plausible that in times of uncertainty transactions are larger as producers have higher incentive to sell their stock and consumers prefer to accumulate food to avoid risk that violence and security measures will impede trade.

Suggested Citation

  • Ihle, Rico & Finkelshtain, Israel & Rubin, Ofir David, 2014. "Markup pricing in the context of a violent conflict: differentiated apples in Hebron wholesale market," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182657, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae14:182657

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Nevo, Aviv, 2001. "Measuring Market Power in the Ready-to-Eat Cereal Industry," Econometrica, Econometric Society, vol. 69(2), pages 307-342, March.
    2. Chaim Fershtman & Neil Gandal, 1998. "The Effect of the Arab Boycott on Israel: The Automobile Market," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 193-214, Spring.
    3. Ihle, Rico & Rubin, Ofir D., 2013. "Consequences of unintended food policies: Food price dynamics subject to the Israeli–Palestinian conflict," Food Policy, Elsevier, vol. 42(C), pages 96-105.
    4. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    5. Fershtman, C. & Gandal, N., 1996. "The Effect of the Arab Boycott on Israel : The Automobile Market," Discussion Paper 1996-08, Tilburg University, Center for Economic Research.
    Full references (including those not matched with items on IDEAS)


    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:ags:eaae14:182657. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.