Combining industrial organization and econometric methods in price transmission analysis

The degree of competition and level of price transmission in food markets have important effects on the welfare level of consumers and producers. Thus, substantial attention has been paid to the analysis of price transmission in food markets. Traditionally, price transmission analyses have focused on applying econometric methods to assess whether prices are cointegrated, the order of cointegration and the adjustment speed. In contrast, less attention has been devoted to the theoretical underpinnings, the structure of the market and the interpretation of results. To address this gap, this st...