Product differentiation and dynamics of cost pass-through in the German fish market: An error-correction-distance measure approach

Bittmann, Thomas; Bronnmann, Julia; Gordon, Daniel V.

doi:10.1016/j.jcomm.2019.100105

Cited by 5 publications

(4 citation statements)

References 46 publications

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“…Although the literature on asymmetric price transmission on seafood is limited, most of the existing studies confirm asymmetric price transmission (e.g., Ankamah-Yeboah & Bronnmann, 2017;Bittmann et al, 2019;Guillen & Franquesa, 2015;Jaffry, 2004;Simioni et al, 2013). This illustrates the fact that in the study of price transmission across market chains of seafood, price asymmetry is important.…”

Section: Background and Literature Reviewmentioning

confidence: 94%

Asymmetric price transmission in a changing food supply chain

Gizaw

Myrland

Xie

2020

Aquaculture Economics & Management

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The farmed salmon supply chain in Europe is changing. There is a growing concentration at intermediary levels in the supply chain and more product differentiation in the market. This means that different price determination processes could apply in various product sub-markets. In this study, price transmission relationships in the salmon value chain were investigated at two different product levels. Specifically, a relatively unprocessed salmon product (fresh salmon) and a more processed product (smoked salmon) were investigated since processing costs might have a significant impact on a vertical price linkage. A threshold cointegration model was applied to estimate the price transmission between the Norwegian export market and the retail markets of France and Spain. The results indicated a price transmission relationship along the fresh salmon chain in both markets; but not along the smoked salmon chains in either market. Furthermore, for the fresh salmon value chain, asymmetric adjustment was observed in both markets.

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Section: Background and Literature Reviewmentioning

confidence: 94%

Asymmetric price transmission in a changing food supply chain

Gizaw

Myrland

Xie

2020

Aquaculture Economics & Management

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“…In a recent strand of the literature, empirical studies have examined the pass‐through of cost and speed of convergence of prices to the equilibrium in non‐homogenous markets to explore the effect of product quality on market price transmission. These studies conclude that product differentiation can influence the level of competition and consumer costs and can alter the dynamics of price transmission (Bittmann, Bronnmann, et al., 2020; Bittmann, Loy, et al., 2020; Loy et al., 2015; Loy & Weiss, 2019). One aspect that has not been studied in the literature is whether food price adjustments due to climate shocks depend on product differentiation.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…First, instead of focusing on farms prices, we are concentrated in consumer prices, which are more related to the issue of food security. Second, one aspect that has been less studied in the literature is the role of climate shocks as the main triggering mechanism of food price convergence in non‐homogenous agricultural markets (Bittmann, Bronnmann, et al., 2020; Bittmann, Loy, et al., 2020). Furthermore, few studies have explored divergences in food price dynamic between traditional markets and supermarkets in the face of climate shocks (Giulietti et al., 2020).…”

Section: Introductionmentioning

confidence: 99%

Drought shocks and price adjustments in local food markets in Chile: Do product quality and marketing channel matter?

Salazar

Acuña-Duarte

Gil³

2023

Agricultural Economics

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Lately, economies have been facing an increase in the frequency and magnitude of droughts, which come with potential consequences on food prices. This article aims to analyze how drought disturbances affect price differences in local food markets. Special attention is paid to differences in product quality and marketing channels. To study the mechanism behind price differences, our analysis is framed within the food market integration theory. Our methodology follows a dyadic regression approach, which allows us to exploit the panel data structure of our market price data. We use monthly Asterix potato and long shelf-life tomato market prices from traditional markets and supermarkets in Chile. To measure drought intensity, we use remote sensing data to construct a drought index. Results show that drought shocks reduce market price differentials around harvesting and commercialization periods, which is supported by the existence of market integration. We also find that prices of high-quality products, less perishable products, and those taken from traditional markets respond more intensively to droughts and take more time to be transmitted. A direct link between droughts and crop quality, as well as supermarkets' larger capacity for buffer stock, may be behind these interpretations. Product differentiation and retail price rigidity arguments are also discussed.

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“…In terms of methodology, recent studies that examine agri-food value chains and the differentiation of commodities have employed different methods for insights. Bittmann et al, (2020) employ a distance measure within an error-correction model in the German fish market.…”

Section: Literature Reviewmentioning

confidence: 99%