The typical model of retail pricing for produce products assumes retailers set price equal to the farm price plus a certain markup. However, observations from scanner data indicate a large degree of price dispersion in the grocery retailing market. In addition to markup pricing behavior, we...

A two-stage model is developed to study food processing firms' brand advertising and its welfare effects on farmers in a duopsony/duoploy setting. In stage 1 firms compete to differentiate their products through brand advertising, and in stage 2 firms engage in quality competition. Farmers may...