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Abstract

During the last years, Canary banana suppliers have made the decision of withdraw a significant part of their exportable supply from the Iberian Peninsula market. In this paper, an analytical tool is provided to evaluate the marginal effects of these decisions on revenues and profit. The key element is the estimation of a model to explain prices as a function of exports. The optimal export levels obtained from this procedure should be cautiously taken due to limitations on statistical information, but should be seen as a guide to the decision making process.

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