Vertical coordination in agriculture is a complex problem. Coordination arrangements have both technical and organizational dimensions. This paper calls attention to the institutional dimensions of vertical coordination. It applies concepts of institutional economics to vertical coordination...

We employ a vertical differentiation model to examine the potential bias in pricing-to-market (PTM) results when using unit values aggregating differentiated products. Our results show that: i) false evidence of PTM (“pseudo PTM”) is always found when using unit values, whether the law of...

We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects. The model is used to analyze wholesale-retail price dynamics in the US butter market. The analysis provides strong evidence of...

The paper investigates the implications of hedonic pricing of components, with an application to the dynamics of dairy product prices. A conceptual model of hedonic pricing is developed under a Leontief technology, showing how commodity prices reflect the underlying value of their components....

Socioeconomic determinants are investigated for both the likelihood of consuming fastfood and household expenditure on fastfood using the 1994-98 USDA Continuing Survey of Food Intakes by Individuals. The logit model is used to estimate an empirical relationship between probability an individual...

This paper investigates the economic implications of storage behavior under imperfect competition. It evaluates the economic dynamics implied by a storage firm under alternative market structures. This includes perfect competition as well as imperfect competition under Cournot behavior. The...

This paper presents a long run analysis of industry behavior allowing for entry and exit, and cost heterogeneity among firms. Treating the number of firms as endogenous provides linkages between firms’ conduct (reflecting the exercise of market power) and market structure. In steady state...