When contract production is marketed contemporaneously with production sold through a spot market, it is conveninet to specify the contract price in terms of the subsequent cash price. This paper examines the competitive implications of such pricing arrangements, focusing in particular upon...

When contract production is marketed contemporaneously with production sold through a spot market, it is conveninet to specify the contract price in terms of the subsequent cash price. This paper examines the competitive implications of such pricing arrangements, focusing in particular upon...

This study examined consumer demand for organic fluid milk in the current maturing organic market using a nationwide weekly retail scanner data set. An Almost Ideal Demand System in which both organic milk and conventional milk were further decomposed into products with different fat content was...

Price transmission from farm to retail is a longstanding and important issue in agricultural marketing. Researchers, producers, and policy makers have been concerned that the transmission of farm price increases to retail may be more quickly and of a greater magnitude than that of farm price...

We study a heretofore unexamined type of product differentiation, horizontally differentiated products with differential costs, and apply the analysis to retail pricing of fluid milk products. The theoretical models yield unique predictions for the relationship among prices of the four...

We propose consumption inertia as a new explanation for asymmetric price transmission. Inertia in consumer demand enlarges retailers’ gains in gross profits from raising prices in response to higher wholesale prices and reduces gains from decreasing prices in response to lower wholesale...

Replaced with revised version of paper 06/15/11.