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Abstract

This study focused on the transmission of price adjustments between grower/shippers and wholesalers and between wholesale handlers and retailers of nine fresh vegetables (only the results associated with bell peppers are reported in this paper). Results among the nine vegetable products were not consistent with respect to the magnitude of adjustments or the time periods involved in the adjustments. In response to wholesale price changes, upward price adjustments at the retail level occur more quickly than do downward price adjustments. Price transmission relationships also varied among the vegetable products between the wholesaler and grower. Overall, the results indicate that factors in addition to changes in upstream prices are impacting retailers' and wholesalers' pricing decisions.

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