Open AccessFruit and Vegetable Prices and Perceptions in Mercalaspalmas Wholesale Market
Author(s) -
Santiago Rodríguez Feijoó,
Alejandro Rodríguez-Caro,
Carlos-Augusto González-Correa
Publication year - 2015
Publication title -
revista innovar journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.156
H-Index - 11
eISSN - 2248-6968
pISSN - 0121-5051
DOI - 10.15446/innovar.v25n55.47230
Subject(s) - economics , market price , producer price index , flexibility (engineering) , wholesale price index , product (mathematics) , price level , index (typography) , wholesale market , monetary economics , microeconomics , mid price , mathematics , electricity , geometry , management , electrical engineering , world wide web , computer science , engineering
This paper studies the behavior of fruit and vegetable prices in a wholesale market. Its aims are: a) to examine price behavior and changes; and b) to identify statistically significant factors in the perception of prices and to quantify the effect of these factors on the market price. For this purpose, daily data were obtained on modal prices at the Mercalaspalmas wholesale market from 2006 until mid-2010. The results obtained show there is a similar degree of flexibility in price increases and decreases, and show the product to be the determinant element in setting prices. There was found to be a strong degree of price permanence, in the sense that changes take place slowly and following a lag. The following significant factors were identified in the perception of prices: the length of time a price has remained unchanged in the market; the period during which a product has been absent from the market; the quantities traded at a given price; and the index of market prices. However, the quantitative effect of this body of factors on the perceived price is very limited.