Multiple Markets Within the EU? Empirical Evidence From Pork and Poultry Prices in 14 EU Member Countrties

The present study investigates the price dynamics of two agricultural commodities, pork and poultry, in order to determine whether there is a single or multiple markets within the EU. The investigation relies on the notion of a price club (meaning a group of countries in which prices obey the LOP) and on a clustering algorithm which allows for endogenous selection of such clubs. Overall, the empirical results indicate that the EU markets for pork and poultry are far from the ideal ones in which prices are uniform.