Pricing behaviour in the Polish pork market during transition

This study deals with price differentiation in the Polish pork market. The hypotheses about firms’ behaviour are derived from theoretical considerations and tested in an econometric analysis using balanced panel data of weekly prices for pork products and selected companies between 1991 and 1998. The empirical findings show that prices are significantly influenced by production costs and the degree of competition among meat processors. In addition, the results suggest that cost leadership strategy, as well as vertical and horizontal product differentiation, are relevant phenomena in the market under investigation. The findings indirectly confirm theoretical considerations suggesting that in oligopolistic markets, firms follow different marketing strategies in order to withstand competitive pressure, and hence to increase their economic efficiency.