Transactions That Did Not Happen and Their Influence on Prices

This paper studies data from the wholesale fruit and vegetables market in Marseille. We have details of counteroffers to the prices that were proposed by the seller even when no transaction took place. With a simple heoretical model we analyse the evolution of prices during the day and in particular the relation between the final price struck and the proposals of the two parties. Periods with no buyer refusals, of offers or bargaining with no transaction will lead to a revision of the sellerÕs first price. More importantly the sharing of the surplus moves in the buyerÕs favour during the day. These presumptions are then shown to be confirmed by our data set.