Asymmetry in farm-retail price transmission in the Turkish fluid milk market
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Date
2014
Authors
Bor, Ozgur
Smihan, Mustafa
Bayaner, Ahmet
Journal Title
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Volume Title
Publisher
Bononia Univ Press
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Abstract
This study investigates the price asymmetry in farm-retail price transmission in the Turkish fluid milk market. An asymmetric error correction model is applied on the monthly price data, and the results suggest that there is a positive price asymmetry in the farm-retail price transmission in the Turkish milk market. That is, the retail prices tend to adjust more quickly to the input price increases than to their decreases which yield welfare losses to the consumers. In addition, cointegration results imply that there is a significant market power in the Turkish fluid milk market. Therefore, the results of this paper support the view that retailers (as well as processors) can exercise significant market power as highlighted by asymmetric price responses in the Turkish milk market.
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Keywords
price asymmetry, retail prices, milk, Error Correction Model, Turkey
Turkish CoHE Thesis Center URL
Fields of Science
Citation
14
WoS Q
Q3
Scopus Q
Q3
Source
Volume
13
Issue
2
Start Page
2
End Page
8