In this article, we estimate the vertical price transmission through the Iranian rice marketing chain by usingmonthly data from March 2000 to February, 2009 and error correction model (ECM).The causality testresults indicate that changes in the producer price clearly led changes in wholesale and retail prices. InProducer-Retail and Wholesale-Retail models, price transmission is asymmetric but i...

Producer brands increasingly dominate the international wine market. Concurrently, generic advertising campaigns are launched in an attempt to promote wine origin and exports (e.g. Australia, Austria, Spain). We analyze U.S. price data and quality indicators for 24 wine growing regions within eleven countries using a hedonic modeling approach. We assess the value of producer brands vs. geograph...

In markets where spatial competition is important, many models predict that average prices are lower in denser markets (i.e., those with more producers per unit area). Homogeneous-producer models attribute this effect solely to lower optimal markups. However, when producers instead differ in their production costs, a second mechanism also acts to lower equilibrium prices: competition-driven sel...

Abstract What is the impact of import competition from other low-wage countries (LWCs) on inflationary pressure in Western Europe? This paper seeks to understand whether laborintensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany, France, Italy, Sweden, and the United Kingdom. In a panel covering 110 (4-digit) NACE industries f...

In a dynamic storable good market where demand changes over time, we investigate the producer’s strategic incentives to hold inventories in response to the possibility of buyer stockpiling. The literature on storable goods has demonstrated that buyer stockpiling in anticipation of higher future prices harms the producer’s profitability, particularly when the producer cannot commit to future pri...

In this paper we investigate how firms adjust markups across products in response to fluctuations in the real exchange rate. In a theoretical framework, we show that firms increase their markups and producer prices following a real depreciation and that this increase is greater for products with higher productivity, a consequence of local distribution costs. We estimate markups at the market-pr...