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European Association of Agricultural Economists >
2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/182779
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| Title: | Farmgate versus retail prices and supermarkets’ pricing decisions: an integrated approach |
| Authors: | Russo, Carlo
Goodhue, Rachael |
| Authors (Email): | Russo, Carlo (russocar@unicas.it) |
| Keywords: | Price distribution
price transmission
supermarket pricing
basket shoppers |
| Issue Date: | 2014-08 |
| Abstract: | Food and agricultural commodity prices exhibit several empirical regularities, including asymmetric price transmission, higher farmgate price volatility, and relatively low correlation between farmgate and retail prices. Supermarket pricing behaviors include promotions, loss-leaders, and unadvertised sales. Existing explanations tend to focus on either the behavior of farmgate and retail prices or on supermarkets’ pricing decisions. We develop a model that integrates them. It has three core assumptions: consumers are basket shoppers, each consumer has a preferred store, and consumers cannot observe the full set of prices freely before entering the store. The phenomena listed above are all outcomes of the model. |
| URI: | http://purl.umn.edu/182779 |
| Institution/Association: | 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia |
| Total Pages: | 14 |
| Collections: | 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia
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| RUSSO_Goodhue.pdf | | 882Kb | PDF | View/Open |
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