In an in…nite horizon model with stochastic costs, moderate in‡ation, costly price adjustment, and optimal price setting, we demonstrate that individual price reductions will be larger but less frequent than price increases. With positive in‡ation, aggregate prices are more responsive to cost increases than to cost decreases, and a calibrated version of the model …ts well the magnitude of downw...

We investigate the price dynamics between retail milk and raw in Turkish fluid market. The study uses monthly prices for 14 years January 2003 December 2016. analyze adjustment market through an asymmetric error correction model with threshold co-integration. find that transmission two has been both long term short period. Differences farm may exist due to marketing costs across supply chain pr...

The asymmetric price volatility transmission issue in agricultural supply chains has been ignored the previous literature. This paper applies an asymmetrical MGARCH-BEKK model to investigate with application Chinese pork market. Additionally, we use Zivot–Andrews unit root test a structural break examine whether piglet, hog, and prices have breaks. results show that pork’s market breakpoint 200...

We propose a new approach to asymmetric …rst price auctions which circumvents having to directly examine bidding strategies. Speci…cally, the ratio of bidders’payo¤s is compared to the ratio of the distribution functions that describe beliefs. This comparison allows a number of easy inferences. In the existing theoretical literature, assumptions of …rst order stochastic dominance or stronger im...

A regime-switching vector error correction model is applied to monthly price data to assess the impact of BSE outbreaks on price relationships and patterns of transmission among farm and retail markets for bovine in Spain. To evaluate the degree to which price transmission is affected by BSE food scares, a BSE food scare index is developed and used to determine regime-switching. Results suggest...

T his article examines cross-price promotional effects in a dynamic context. Among other things, we investigate whether previously established findings hold when consumer and competitive dynamics are taken into account. Five main influential effects (asymmetric price effect, neighborhood price effect, asymmetric share effect, neighborhood share effect, and private label versus national brand as...

U sing daily data, this study examined asymmetric pass-through of Iran’s oil price to banking stock index in Tehran Stock Exchange at different time horizons. Based on the results, the coefficient of long-run pass-through of oil price to banking stock index was estimated to be 0.63. Furthermore, based on the short-term ARDL-CECM models, the relationship between the positive component...