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Heterogeneity In Price Changes In The German Butter Market

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  • Tifaoui, Said
  • Von Cramon-Taubadel, Stephan

Abstract

We show how the measurement scale affects the results of the vertical price transmission analysis. We aim to answer the following question: how changes in wholesale prices (i.e. changes in the margin) affect the changes in the retail price of butter in Germany? We find that the average margin of the chains which change more frequently their prices is twofold the standard deviation of average margin in the German butter market, whereas, the chains characterized by less frequency in their price changes have an average margin which is a fold the standard deviation below this average margin.

Suggested Citation

  • Tifaoui, Said & Von Cramon-Taubadel, Stephan, 2015. "Heterogeneity In Price Changes In The German Butter Market," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209226, German Association of Agricultural Economists (GEWISOLA).
  • Handle: RePEc:ags:gewi15:209226
    DOI: 10.22004/ag.econ.209226
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    File URL: https://ageconsearch.umn.edu/record/209226/files/P1-183-Tifaoui-HETEROGENEITY_IN_PRICE_CHANGES_IN_THE_GERMAN_BUTTER_MARKET.pdf
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    Keywords

    Demand and Price Analysis;

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