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Price Asymmetry in the U.S. Pork Marketing Channel
Author(s) -
Boyd Milton S.,
Brorsen B. Wade
Publication year - 1988
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/10.1.103
Subject(s) - asymmetry , economics , channel (broadcasting) , mid price , marketing channel , price level , monetary economics , microeconomics , physics , quantum mechanics , electrical engineering , engineering
This paper tests the existence of price asymmetry within the U.S. pork marketing channel using an asymmetric pricing model. Asymmetry is tested both for the sum of price adjustments and the speed of price adjustments. Results show that wholesale (packer) prices respond similarly to farm price decreases and increases. Also, there is no significant difference between retailers' response to wholesale price increases and their response to wholesale price decreases.