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Asymmetric Prices: Implications on Trader’s Market Power in Philippine Rice

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  • Reeder, Meyra M.

Abstract

Contrary to the commonly held notion that the market power exercised by a handful of unscrupulous traders in the local market has resulted unnecessary hike in prices, this paper presents evidence against this allegation. Findings show that market shocks originate at the farm level that are transmitted as price changes at the wholesale market before it is reflected at the retail market. In addition, symmetry test cannot confirm the presence of market power among Filipino traders. Nevertheless, estimation of price symmetry model does not lend credence to the claim that government’s absence in the market can lead to chaos.

Suggested Citation

  • Reeder, Meyra M., 2000. "Asymmetric Prices: Implications on Trader’s Market Power in Philippine Rice," Philippine Journal of Development JPD 2000 Vol. XXVII No. 1, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:pjdevt:jpd_2000_vol__xxvii_no__1-c
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    References listed on IDEAS

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    Cited by:

    1. Yao, Richard T. & Shively, Gerald E. & Masters, William J., 2005. "How Successful Are Government Interventions In Food Markets? Insights From The Philippine Rice Market," 2005 Annual meeting, July 24-27, Providence, RI 19263, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Aldaba, Fernando T., 2002. "Philippine Development: A Research Journey Through the Philippine Journal of Development," Philippine Journal of Development PJD 2002 Vol. XXIX No. 2-, Philippine Institute for Development Studies.
    3. Bairagi, S. & Mohanty, S., 2018. "Analysis of Price Transmission along the Cambodian Rice Value Chain," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277022, International Association of Agricultural Economists.
    4. Briones, Roehlano M. & Dela Pena, Beulah, 2015. "Competition Reform in the Philippine Rice Sector," Discussion Papers DP 2015-04, Philippine Institute for Development Studies.
    5. Abrigo, Michael R.M., 2016. "Who Weans with Commodity Price Shocks? Rice Prices and Breastfeeding in the Philippines," Research Paper Series DP 2016-28, Philippine Institute for Development Studies.
    6. Abrigo, Michael Ralph M., 2016. "Who Weans with Commodity Price Shocks? Rice Prices and Breastfeeding in the Philippines," Discussion Papers DP 2016-28, Philippine Institute for Development Studies.
    7. Galang, Ivory Myka R., 2014. "A Spatial Integration Analysis of the Regional Fertilizer Markets in the Philippines," Discussion Papers DP 2014-36, Philippine Institute for Development Studies.
    8. Pede, Valerien O. & Valera, Harold Glenn A. & Alam, Mohammad Jahangir & McKenzie, Andrew M., 2013. "Nonlinearities in Regional Rice Prices in the Philippines: Evidence from a Smooth Transition Autoregressive (STAR) Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150246, Agricultural and Applied Economics Association.

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