Fundamental Question: Do Retailers Have Market Power?

Topics:
Grocery
Tags:
Economic Research Service,
Industry,
Management,
Retail,
Strategy
Source:
Economic Research Service

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Overview: Sweeping generalizations of how buying and selling prices are determined in produce markets are invalid if not impossible. Each fruit and vegetable market is distinct. However, to be useful, economic models of price determination must separate which market differences are important from those that may be plausibly assumed to be constant. The commodity markets considered in this report are all semi-perishable - each can be stored either on the tree or in cold storage for a significant amount of time. As such, this report states that retail industry members must consider how each rival uses their own power in setting prices to growers.

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Format: PDF | Size: 43KB | Date: Sep 2003 | Pages: 3

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