In food retailing a high degree of static price dispersion between and within stores and between brands has been documented, but at the brand and/or retail outlet level the dynamic behaviour of prices, as well as its causes, have not been analysed in the European food market context. In this paper we estimate the dynamic pricing behaviour of brands at various retail outlets to identify the role of private (low-price brands) and national (high-price brands) labels to explain the dispersion of retail price dynamics. The results indicate significant asymmetries in cost pass-through processes, which vary between brands and outlets. In particular, private labels (low-price brands) adjust prices faster than national labels (high-price brands). Moreover, cost pass-through is slightly more (positive) asymmetrical for private labels than for high-price national brands.
The demand on the German potato market has been under significant change in the last decades. The use of potatoes has shifted from consumption of table stock potatoes to processed potato products. Pavlista and Feuz (American Journal of Potato Research, 82:339-343, 2005) describe the same development for the U.S. potato market and show that the demand has become more elastic after this shift. We test this hypothesis for the German market and find almost the same impact on the elasticity of demand. However, as the German reunification coincides with the shift in demand, its impact is indistinguishable from the underlying hypothesis.Resumen La demanda en el mercado de papas alemanas ha estado bajo cambios significativos en las últimas décadas. El uso de la papa ha girado de consumo en fresco a productos procesados. Pavlista y Feuz (American Journal of Potato Research, 82:339-343, 2005) describen el mismo desarrollo para el mercado de papa en EUA, y muestran que la demanda se ha vuelto más elástica después de este giro. Nosotros probamos esta hipótesis para el mercado alemán y encontramos casi el mismo impacto en la elasticidad de la demanda. No obstante, a medida que la reunificación alemana coincide con el cambio en la demanda, su impacto no es distinguible de la hipótesis subyacente.
Seasonal variations of the price premium for bread and feed wheat indicate opportunities to profitably adjust the grain marketing strategy of farmers that harvest (and store) both wheat types. In this article, we estimate the seasonal pattern of wheat price premiums on the German market using a vector error correction approach, which accounts for multivariate autoregressive conditional heteroscedasticity of the error terms. Our results indicate a significant downward trend for the premium during the marketing season, with the trend's magnitude depending on the average quality of harvested wheat. If farmers separately store both bread and feed wheat, they should tend to sell bread wheat before they sell feed wheat, particularly in years of low average wheat qualities. Further, the volatility of the price premium significantly decreases over the season, indicating higher risks at the beginning and lower risks towards the end.
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