SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Shi, Guanming; Chavas, Jean-Paul.

This paper investigates the pricing and vertical organization of differentiated products under imperfect competition. In a multiproduct context, a Cournot model is used to examine how substitution/complementarity relationships among products and vertical structures can affect the exercise of market power. This motivates a generalization of the Herfindahl-Hirschman index (termed VHHI) capturing how market concentration and vertical structures interact to influence prices of differentiated products. The analysis is applied to pricing of soybean seeds in the US over the period 2000-2007. The analysis considers two vertical structures employed by biotech firms: vertical integration and licensing. The econometric analysis finds evidence that vertical...

INTEGRATION AND BEHAVIOR IN THE U.S. WINTER MARKET FOR FRESH TOMATOES

Palavras-chave: Vertical structures; Pricing; Imperfect competition; Seed; Biotechnology; Demand and Price Analysis; Industrial Organization; L13; L4; L65.

Ano: 2009

URL: http://purl.umn.edu/49186

Jordan, Kenrick H.; VanSickle, John J..

Alternative hypotheses of market integration in the U.S. winter market for fresh tomatoes were evaluated using a dynamic model of spatial price adjustment. The results showed that while Florida and Mexico were integrated in the same market, a price change in one area was not instantaneously reflected in the other. Lagged effects were important with long-run integration being supported for both Florida and Mexico and short-run integration for Mexico. However, the information flow, while relatively efficient, was not symmetric. Florida was found to be dominant in the price formation process with Mexico responding to changes in the Florida price.

Tipo: Journal Article

Palavras-chave: Florida; Market integration; Mexico; Pricing; Tomatoes; Marketing.

Ano: 1995

URL: http://purl.umn.edu/15349

Water markets in the Fordwah/Eastern Sadiqia area: an answer to perceived deficiencies in canal water supplies?

Strosser, Pierre; Kuper, Marcel.

This paper presents the results of a study on water markets in the Fordwah/Eastern Sadiqia Area, Punjab, Pakistan. The study stresses and quantifies the importance of water markets in the area. A first attempt is made to evaluate the impact of water markets on the quality of irrigation services.

Market Share and Price Setting Behavior For Private Labels and National Brands

Palavras-chave: Water market; Water supply; Groundwater; Surface irrigation; Conjunctive use; Tube well irrigation; Agricultural production; Water policy; Pricing; Water costs; Farmer participation; Agricultural and Food Policy; Crop Production/Industries; Farm Management; Financial Economics; Production Economics.

Ano: 1994

URL: http://purl.umn.edu/114047

Cotterill, Ronald W.; Putsis, William P., Jr.; Dhar, Ravi.

In this paper, we develop a framework for estimating market share and price reaction equations in an attempt to understand the nature of competitive interaction in the market for private label and branded grocery products. Specifically, we employ a Linear Approximate Almost Ideal Demand System (LA/AIDS, Deaton and Muellbauer 1980a), and specify the price reaction equations derived under the LA/AIDS demand specification. This enables us to consistently estimate shareprice relationships, accounting for demand-side and competitive reactions simultaneously. The incorporation of LA/AIDS demands into a structural equation framework represents an important departure from previous demand specifications in competitive analysis. In addition to its rigorous...

On the Theory and Practice of Water Regulation

Palavras-chave: Competition; Competitive strategy; Private labels; Pricing; Demand and Price Analysis; Industrial Organization.

Ano: 2000

URL: http://purl.umn.edu/25209

Tsur, Yacov.

We study water regulation for a schematic water economy representing a wide range of real world situations. A water policy has inter- and intra-temporal components. The first determines the limits on extractions from the naturally replenished sources, given the stochastic nature of recharge processes associated with uncertain precipitation. The intra-temporal regulation is concerned mainly with the allocating of the extracted and produced water among the end-users. The prices that implement the optimal intra-temporal allocation are derived. Regulation issues associated with cost recovery and asymmetric information are discussed.

Preferential Cattle and Hog Pricing by Packers: Evidence from Mandatory Price Reports

Palavras-chave: Scarcity; Pricing; Optimal allocation; Water economy; Resource /Energy Economics and Policy; C61; D82; Q11; Q25.

Ano: 2009

URL: http://purl.umn.edu/47503

Ward, Clement E..

Preferential pricing was one of several concerns leading to mandatory price reporting. Seven years of “new” data from mandatory reports are examined to determine if evidence exists of preferential pricing by packers for fed cattle and slaughter hogs. Weekly data show some alternative marketing methods track closer to cash market prices than others. Some differences can be explained, while others are not as clear. Evidence was found that cash prices lead prices for alternative marketing methods on rising markets but trail them on declining markets.

Assessing the Competitive Interaction Between Private Labels and National Brands

Palavras-chave: Alternative marketing arrangements; Cattle; Hogs; Marketing; Meatpacking procurement; Price discovery; Pricing; Livestock Production/Industries; Marketing.

Ano: 2008

URL: http://purl.umn.edu/37989

Cotterill, Ronald W.; Putsis, William P., Jr.; Dhar, Ravi.

In contrast to single-equation cross-sectional studies of private label share, developing a complete understanding of the nature of the competitive interaction between national brands and private labels requires an understanding of the determinants of both demand and strategic pricing decisions by firms. Consequently, we estimate a simultaneous system of share and price for private labels and national brands. From the empirical results, two measures of market response are derived. The unilateral demand elasticity measures the pure own demand response, while the residual (or total) elasticity also captures the impact of competitive price reaction (Baker and Bresnahan 1985). When taken together, these provide important strategic insights into the pricing...

Confirming the Price Effects of Private Labels Development

Palavras-chave: Competition; Competitive strategy; Private labels; Pricing; Demand and Price Analysis.

Ano: 1999

URL: http://purl.umn.edu/25177

Bontemps, Christophe; Orozco, Valerie; Requillart, Vincent.

We study the price response of national brands to the development of private labels. We use monthly data from a consumer survey reporting their purchases for 218 food products. We show that when private labels have a significant effect on national brands prices (144 cases over 218), that is positive (89%). We also show that the increase in the prices of national brand products is explained by a strategy of product differentiation. Finally, price reaction of national brands differs with the type of private labels they are facing. This paper confirms, on a larger number of products, previous empirical results.

Feedlot and Packer Pricing Behavior: Implications for Competition Research

Palavras-chave: Private labels; Pricing; Empirical models; Food products; L81; Q13; D40; Demand and Price Analysis.

Ano: 2005

URL: http://purl.umn.edu/24735

Ward, Clement E..

Seldom are observed losing bids available in industry data. A special workshop of the Fed Cattle Market Simulator was designed to capture bids for each pen of cattle traded. Data enabled identifying buyer and seller behavior in the price discovery process, both before and after imposed mergers of the two largest and two smallest packer teams. Highest losing bids also were estimated with packer bid functions and compared with observed highest losing bids. An estimated price discovery model indicated market structure as measured by number of buyers was more important than simply the number of bids or size of transactions.

Insolvency probability in reinsurance treaty: a case study in Malaysia

Palavras-chave: Buyer behavior; Competition; Fed cattle; Marketing; Pricing; Seller behavior; Livestock Production/Industries.

Ano: 2007

URL: http://purl.umn.edu/7365

Ismail, Noriszura; Ahmad Anuar, Ansar Asnawi.

In developing countries such as Malaysia, the availability of reinsurance arrangements provides several advantages to the primary insurers such as keeping their risk exposures at prudent levels by having their large risk exposures reinsured by another company, meeting client requests for larger insurance coverage by having their limited financial sources supported by another company, and acquiring underwriting skills, experience and ability of handling complex claims by depending on another company for such services. This paper aims to model insurance claims and assess the insolvency probability of reinsurance treaties. Claims data was obtained from one of the leading insurers in Malaysia and R programming with actuar package is used to compute the...

Tipo: Journal Article

Palavras-chave: Reinsurance; Pricing; Insolvency probability; Excess-of-loss.; Financial Economics; C10; C13.

Ano: 2009

URL: http://purl.umn.edu/94581

Marketing and pricing dynamics in the presence of structural breaks - the Hungarian pork market

Bakucs, Lajos Zoltan; Ferto, Imre.

The study of marketing margins and price transmission on various commodity markets has been a popular research topic of the past decades (see MEYER, VON CRAMONTAUBADEL, 2004, for a recent survey), however with a few exceptions these studies focused on developed economies. In this paper we examine the above phenomena on the: Hungarian pork market. The Johansen (maximum likelihood) or Engle and Granger (two step) cointegration tests do not reject the no-cointegration null hypothesis between the Hungarian pork producer and retail price series. Therefore we apply the Gregory and Hansen procedure with recursively estimated breakpoints and ADF statistics, and found that the prices are cointegrated with a structural break occurring in April 1996. Exogeneity tests...

STRUCTURAL CHANGE AND MARKET PERFORMANCE IN AGRICULTURE: CRITICAL ISSUES AND CONCERNS ABOUT CONCENTRATION IN THE PORK INDUSTRY

Palavras-chave: Price transmission; Marketing margin; Pricing; Structural breaks; Hungarian pork market; Demand and Price Analysis; Marketing.

Ano: 2006

URL: http://purl.umn.edu/10031

Paarlberg, Philip L.; Boehlje, Michael; Foster, Kenneth A.; Doering, Otto C., III; Tyner, Wallace E..

We have witnessed profound changes in the pork sector over the last several years. These involve integration and concentration that raise issues of competitiveness in both input and product markets as well as issues of who bears risk and who reaps rewards. We see clear evidence of increased concentration, by several measures, to the point where public vigilance is warranted. Two major policy options are anti-trust action and increasing the market power of hog producers through institutional arrangements new to the hog industry. Better information in specific areas of concern is needed before informed public policy can be made with respect to either policy option, and the option of increasing producer market power will require active public support.

Farmer Cooperative Theory: Recent Developments

Palavras-chave: Pork industry; Public policy; Pricing; Concentration; Market power; Vertical integration.; Agricultural and Food Policy; Industrial Organization.

Ano: 1999

URL: http://purl.umn.edu/28654

The Effects of Vertical Organization on the Pricing of Differentiated Products

Staatz, John M..

Since 1980, agricultural economists have begun to reexamine fundamental issues in the theory of agricultural cooperation. These include the basic nature of farmer cooperation; the theoretical benefits and limits of cooperative enterprise; and the implications of these for cooperative members, managers, and public policy. Analysts have extended previous models of the cooperative as a type of business firm in order to analyze the impact of large cooperatives on market performance. They have also developed new models to analyze how cooperatives attempt to serve the divergent interests of different participants, such as managers and different classes of farmers. This report describes and evaluates recent theoretical developments, outlines remaining areas of...

Tipo: Report

Palavras-chave: Cooperative theory; Public policy; Market coordination; Economic performance; Finance; Pricing; Member control; Agribusiness.

Ano: 1989

URL: http://purl.umn.edu/52017

Shi, Guanming; Chavas, Jean-Paul.

We investigate differentiated product pricing and the effects of vertical organization under imperfect competition. We rely on vertical measures of concentration (termed VHHI) to study how the exercise of market power varies with substitution/complementarity relationships among products and vertical structures. This approach is applied to U.S. soybean seed pricing under vertical integration versus licensing. We find evidence that vertical organization affects seed prices, with an impact ranging from 1.87% to 13.6% of the mean price. These effects vary by institutional setup.We also find that complementarity can mitigate price enhancements associated with market concentration.

Tipo: Article

Palavras-chave: Biotechnology; Imperfect competition; Pricing; Seed; Soybean; Vertical structures; Demand and Price Analysis; Industrial Organization.

Ano: 2011

URL: http://purl.umn.edu/119157

Competition Effects of Supermarket Services

Bonanno, Alessandro; Lopez, Rigoberto A..

This paper investigates the effect of in-store services on retail food prices, supermarket competition, and demand using fluid milk as a case study. It is shown that higher-service supermarkets charge higher milk prices essentially because of an increase in market power due to differentiation of service offering. Results show that different types of services impact milk prices differently, that upscale food-retailers face stronger competition in newer services, and that service competition results in a trade-off for the consumer between the attractiveness of the enhanced retail configuration and the increase in prices.

Structure of Dairy Markets: Past, Present, Future

Palavras-chave: Retailing; Pricing; Milk; Supermarkets; Agribusiness; L81; D40; L66.

Ano: 2007

URL: http://purl.umn.edu/9833

Manchester, Alden C.; Blayney, Donald P..

The U.S. dairy industry, many segments of which supported dairy policy changes in the 1996 Federal Agriculture Improvement and Reform Act, is much different than it was 20 or even 10 years ago. This report provides a historical overview of the industry, more detailed examinations of the fluid milk market and selected manufactured dairy product markets, a discussion of future prospects and trends in the industry, and some thoughts on the implications of those prospects and trends for dairy farmers and their organizations, processors, dairy product manufacturers, and retailers.

Tipo: Report

Palavras-chave: Dairy; Butter; Cheese; Nonfat dry milk; Market structure; Pricing; Competition; Livestock Production/Industries; Marketing.

Ano: 1997

URL: http://purl.umn.edu/33929

The Determinants of the Global Digital Divide: A Cross-Country Analysis of Computer and Internet Penetration

Chinn, Menzie D.; Fairlie, Robert W..

To identify the determinants of cross-country disparities in personal computer and Internet penetration, we examine a panel of 161 countries over the 1999-2001 period. Our candidate variables include economic variables (income per capita, years of schooling, illiteracy, trade openness), demographic variables (youth and aged dependency ratios, urbanization rate), infrastructure indicators (telephone density, electricity consumption), telecommunications pricing measures, and regulatory quality. With the exception of trade openness and the telecom pricing measures, these variables enter in as statistically significant in most specifications for computer use. A similar pattern holds true for Internet use, except that telephone density and aged dependency...

Do Sales Matter? An Exploration of Price Discounting in UK Food Retailing

Palavras-chave: Computers; Internet; Digital divide; Infrastructure; Pricing; Regulation; Teaching/Communication/Extension/Profession; O30; L96.

Ano: 2004

URL: http://purl.umn.edu/28408

Lloyd, Tim A.; Morgan, C. Wyn; McCorriston, Steve; Zgovu, Evious.

This paper assesses the impact of promotional activity in the prices of food products on supermarket shelves. The study analyses a unique, high frequency panel of supermarket prices consisting of over 230,000 weekly price observations on around 500 products in 15 categories of food stocked by the UK’s seven largest retail chains. In all, 1,700 weekly time series are available at the barcode-specific level including branded and own label products. Prices are inclusive of promotions and thus allow the frequency, magnitude and duration of sales to be analysed in greater detail than has hitherto been possible with UK data. Using this price data, sales periods are indentified. Results show that around 8% of products are on sale at any one time, and that sales...

On the Competitive Interaction Between Private Label and Branded Grocery Products

Palavras-chave: Food retailing; Pricing; Sales; Demand and Price Analysis; Industrial Organization; Marketing; L16; L66; Q13.

Ano: 2009

URL: http://purl.umn.edu/51572

Cotterill, Ronald W.; Dhar, Ravi; Putsis, William P., Jr..

Recent research in marketing has focused on cross-category variation in the market share of private label products, while recent work in the economics and industrial organization literature has focused on the determinants of firm price setting behavior. In this paper, the authors develop a framework for estimating market share and price reaction equations simultaneously in an attempt to understand the nature of competitive interaction in the market for private label and branded grocery products. Empirical findings support the author's premise that consumer response to price and promotion decisions (demand) and the factors influencing firm pricing behavior (supply) jointly determine observed market prices and market shares. More specifically, the authors...