The Long Run, Market Power and Retail Pricing

Jumah, Adusei (March 2000) The Long Run, Market Power and Retail Pricing. Former Series > Working Paper Series > IHS Economics Series 78


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Abstract: The paper uses the Johansen cointegration approach to analyse long-run pricing strategies of pork and chicken retailers in Austria. Long-run retail pricing strategy is found to be dependent on market share and price elasticity of demand for product. A combination of mark-up pricing strategy for pork and a competitive pricing strategy for chicken is considered by retailers to yield maximum profit. Long-run price adjustment reveals linkages to pricing strategy. The versatility of the Johansen cointegration technique as a tool capable of analysing both competitive and imperfect market situations is also revealed. The paper recommends meat policy to be product specific rather than holistic.;

Item Type: IHS Series
Keywords: 'Market power' 'Markup pricing' 'Cointegration' 'Long run'
Classification Codes (e.g. JEL): C32, D43, L11, Q13
Date Deposited: 26 Sep 2014 10:37
Last Modified: 27 Sep 2019 06:45

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