104 research outputs found

    Market power of German food and beverage industries on international markets

    Get PDF
    In this paper the existence and magnitude of market power for German beer, cocoa powder, chocolate, and sugar confectionary exporters are tested. Two theoretical approaches are employed, the 'pricing of market' (PTM) and the 'residual demand elasticity' (RDE) approach. Even though all markets show a significant violation of the 'law of one price' estimations for monthly data from 1991 to 1998 reveal that markets are in most cases perfectly competitive. However, while in some cases significant market power is indicated for the PTM approach, the RDE results do not support these findings. This leads to the conclusion that the underlying theoretical models fail to consistently match the observed price equilibria on the market under study. --

    RETAIL SALES: DO THEY MEAN REDUCED EXPENDITURES? GERMAN GROCERY EVIDENCE

    Get PDF
    Retail pricing strategies incorporate promotions, sales, and rigidities. A number of models have been proposed in particular to explain the occurrence of sales. Focussing on the market for fresh foods the model by Varian and the loss leader argument seem to be intuitively best fitting to the conditions in the fresh food market. From these models we derive several hypotheses that are tested for a unique data set of the German fresh food retail market. The data set consists of weekly prices for ten food items in 131 grocery shops over the period from 1995 to 2000. Following Varian sales should lead to reduced expenditures, while the loss leader argument assumes that consumers are lured into the shop by promotional sales which are covered by higher prices for other products. The results indicate that expenditures decrease with the number of sales in the short run but this effect is outweighed by a dynamic price adjustment thereafter.Food Consumption/Nutrition/Food Safety, Marketing,

    FOOD RETAIL SALES (PRICING): THEORY AND EMPIRICAL EVIDENCE FOR GERMAN GROCERY STORES

    Get PDF
    Retail pricing indicates many phenomena, such as sales or rigidities. A number of models have been proposed in particular to explain the occurrence of sales. Focussing on the market for fresh foods the model by Varian and the loss leader argument seem to be intuitively best fitting to the conditions in the fresh food market. From these models we derive several hypotheses that are tested for a unique data set of the German fresh food retail market The data set consists of weekly prices for ten food items in 131 grocery shops over the period from 1995 to 2000. The results support to some extent the Varian model and also indicate some dynamic loss leader pricing. However, rejections of some hypothesis provide some hints for successive models adjustments. Promising extensions of the theory might be based on the consideration of menu and switching costs.Marketing,

    The Impact of Euro Introduction on the Vertical Price Transmission in the German Food Market - Does Money Illusion Matter?

    Get PDF
    In this paper the impact of the introduction of the Euro on the vertical price transmission in German food markets is analyzed. It is hypothesized that following the introduction of the Euro the presence of money illusion might have lead to higher real prices, and if so it is likely accompanied by higher margins between respective wholesale and retail prices. While other studies have mainly focused on the behavior of average prices, here reactions at the individual store level are investigated. For cucumber and carrots the vertical price relationships between retail and wholesale prices are estimated by employing an error correction approach, which is enhanced to test for structural breaks with a flexible time frame using a F-max approach. The results indicate significant changes in the vertical price relationships for one forth of the retailers under study. Though significant the directions of changes do not uniquely fit the theoretical predictions for money illusion. Thus, the majority of German food retailers has not used the introduction of the Euro to increase their mark ups.Financial Economics, Industrial Organization,

    DOES MONEY ILLUSION MATTER? THE IMPACT OF EURO ON THE VERTICAL TRANSMISSION OF FOOD PRICE IN GERMANY

    Get PDF
    In this paper the impact of the introduction of the Euro on the vertical price transmission in German food markets is analyzed. It is hypothesized that the presence of money illusion might have lead to higher real prices as a result of the Euro, and if so it must be accompanied with a higher margin between the respective wholesale and retail price. While generally studies focus on the behavior of average prices, in this study the reactions of individual retailers are investigated. For lettuce and chicken the vertical price relationships between retail and wholesale prices are estimated by an error correction approach, which is extended to test for structural breaks with a flexible time frame. The results indicate no impact of the Euro for most of the retail stores. However, about every fifth grocery store did react to the new currency by generally increasing its mark up significantly. This leads to the conclusion that money illusion might have a significant impact on the real adjustment of prices.Marketing,

    Effect of Resource Productivity of Maize-Based Farmers on Poverty Reduction in South West, Nigeria

    Get PDF
    The ability of Nigerian agriculture to perform its role in the development of the economy has been on the decline in the last three decades. Therefore, the 2030 Agenda’s historic commitment to rid the world of the twin scourges of poverty and hunger cannot become a reality if nothing is done about improving resource productivity so as to reduce poverty. This article examined the effect of resource productivity of maize-based farmers on poverty reduction in South-West, Nigeria. Multi-stage sampling procedure was used to select 180 respondents and data were collected with the aid of a structured questionnaire. The stochastic frontier production function, poverty index and probit regression model were used to analyze data from the study. Results showed that age, farming experience, cooperative membership, credit, extension visits, farm distance, and land ownership were significant determinants of efficiency of maize-based farmers. The poverty incidence, poverty gap and poverty severity were 42%, 50% and 11.2% respectively. Results further showed that efficiency and other variables were significant determinants of poverty among respondents in the study area. Policies that facilitate increased production of maize, increased level of education, increased cooperative membership, and access to credit are essential to help reducing poverty among maize-based farmers and among the rural poor in general. Keywords: Maize-based farmers; Poverty; Probit regression; Resource-productivity, Stochastic frontier analysis. DOI: 10.7176/JESD/13-20-09 Publication date:October 31st 202

    Data Aggregation and Vertical Price Transmission: An Experiment with German Food Prices

    Get PDF
    The impact of cross sectional aggregation over individual retail stores on the estimation and testing of vertical price transmission between the wholesale and retail levels is investigated using a unique data set of individual retail prices in Germany. Systematic differences between the results of estimations using aggregated data on the one hand, and disaggregated data on the other, are discussed theoretically and confirmed empirically. The results suggest that estimation with aggregated data generates misleading conclusions about price transmission behavior at the level of the individual units (i.e. retail stores) that underlie these aggregates.Aggregation, Vertical Price Transmission, Food Prices, Germany, Demand and Price Analysis, Marketing, L11, D40,

    THE IMPACT OF DATA AGGREGATION ON THE MEASUREMENT OF VERTICAL PRICE TRANSMISSION: EVIDENCE FROM GERMAN FOOD PRICES

    Get PDF
    The impact of cross sectional aggregation over individual retail stores on the estimation and testing of vertical price transmission is investigated using a unique data set of individual retail prices. Systematic differences between the results of estimations using aggregated data on the one hand, and disaggregated data on the other, are discussed theoretically and confirmed empirically. The results suggest that results based on aggregated data generally cannot be used to draw conclusions about price transmission behaviour at the level of the individual data that underlies aggregates.Demand and Price Analysis,

    Export Market Linkage via Gentleman's Agreement: Evidence from French Bean Marketing in Kenya

    Get PDF
    "Gentleman's agreements" involving handshakes or promissory market access possibilities through brokers and middlemen have enabled most small farmers in Kenya to export an extensive array of fruits and vegetables. However, despite rapid expansion into these forms of market linkages, there has been a dearth of empirical information regarding the factors that such marketers consider when linking small farmers to the market. This paper uses data from a 2001 French bean farmers survey conducted in Mwea Tebere Central Kenya to evaluate household and infrastructural factors determining informal linkages for French bean marketing. Logit estimates show that irrigation equipment is a prerequisite for linkage, farm localities further from central crop collection centres and close proximity of farms to source of irrigation waters, and poor accessibility of large farms preferred by brokers in linking small farmers. The results lend credence to the importance of brokers and middlemen as an emerging institution in linking small farmers to export markets in rural regions that have poor infrastructures e.g. roads.verbal agreement, logit, French beans exports, small farmers, linkage, brokers and middlemen, International Relations/Trade,
    • …
    corecore