Describing Price Formation in Semi-Perishable Produce Markets

Topics:
Grocery
Tags:
Channel Management,
Economic Research Service,
Formation,
Marketing,
Marketing Research,
Pricing,
Retail Price
Source:
Economic Research Service

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Overview: Central to the development of any model of retail and supplier price determination, therefore, is an understanding of how pricing strategies influence, how and where, prices are determined. This report describes the price formation in semi-perishable produce markets. This report summarizes that fresh fruit prices tend to be formed at the shipping point rather than at retail. It also shows that retail price adjustment in response to a shock at the shipping point is fundamentally asymmetrical, with retail price increases occurring far more rapidly and completely than price reductions.

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Format: PDF | Size: 51KB | Date: Sep 2003 | Pages: 5

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