Skip to main content Accessibility help
×
Home
Hostname: page-component-564cf476b6-pp5r9 Total loading time: 0.427 Render date: 2021-06-21T23:57:15.642Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "metricsAbstractViews": false, "figures": true, "newCiteModal": false, "newCitedByModal": true, "newEcommerce": true }

Market Structure and Spatial Price Dynamics

Published online by Cambridge University Press:  05 September 2016

B. Wade Brorsen
Affiliation:
Oklahoma State University
Jean-Paul Chavas
Affiliation:
University of Wisconsin
Warren R. Grant
Affiliation:
National Economics Division, ERS/USDA
Get access

Abstract

A method was developed with time series models to test hypotheses about the relationship between market structure and spatial price dynamics. Long-run dynamic multipliers measuring the magnitude of lagged adjustment for spatial milled rice prices were calculated from the time series model and used as the dependent variable in a regression model that included a number of factors expected to influence price determination. Results show that price adjustments were slower as regional submarket concentration increased and were faster in the regions with a higher market share. Arkansas, the state with the largest market share, was consistently a price leader.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 1991

Access options

Get access to the full version of this content by using one of the access options below.

References

Akaike, H.Fitting Autoregressive Models for Prediction.Annals Inst. Stat. Math., 21(1969):826839.CrossRefGoogle Scholar
Bedrossian, Arakel and Demetrios Moschos. “Industrial Structure, Concentration, and the Speed of Price AdjustmentJ. Indust. Econ., 36(1988):459481.CrossRefGoogle Scholar
Brorsen, B. Wade. “A Study of the Efficiency and Dynamics of Rice Prices” Ph.D. dissertation, Texas A&M University, 1983.Google Scholar
Brorsen, B. Wade, Chavas, Jean-Paul, and Grant, Warren R.. “A Dynamic Analysis of Prices in the U.S. Rice Marketing ChannelJ. Bus. & Econ. Stat., 4(1985a):362369.Google Scholar
Brorsen, B. Wade, Chavas, Jean-Paul, Grant, Warren R., and Ngenge, A.W.. “Spatial and Temporal Relationships Among Selected U.S. Grain PricesN Cent. J. Agr. Econ. 7(1985b):110.Google Scholar
Carlton, Dennis.The Rigidity of PricesAm. Econ. Rev., 76(1986):637658.Google Scholar
Chow, Gregory C. Analysis and Control of Dynamic Economic Systems. New York: Wiley & Sons, 1975.Google Scholar
Danthine, J.P.Martingale Market Efficiency and Commodity PricesEuropean Econ. Rev, 10(1977): 117.CrossRefGoogle Scholar
Depodwin, H.J. and Seiden, R.T.. “Business Pricing Policies and Inflation,J. Pol. Econ., 71(1963):116127.CrossRefGoogle Scholar
Dhrymes, Phoebus J.Restricted and Unrestricted Reduced Forms: Asymptotic Distribution and Relative EfficiencyEconometrica, 4(1973):119134.CrossRefGoogle Scholar
Dixon, R.Industry Structure and the Speed of Price-AdjustmentJ. Indust. Econ., 31(1983):2537.CrossRefGoogle Scholar
Domberger, S. Industrial Structure, Pricing and Inflation. Oxford: Martin Robertson, 1983.Google Scholar
Fama, E.F.Efficient Capital Markets: A Review of Theory and Empirical WorkJ. Finance, 25(1976):383423.CrossRefGoogle Scholar
Fuller, Wayne. An Introduction to Time Series Analysis. New York: Wiley & Sons, 1976.Google Scholar
Geweke, J.Inference and Causality in Economic Time Series Models” Handbook of Econometrics, Vol. 2, Griliches, Z. and Intriligator, M., eds. Amsterdam: North Holland, 1984.Google Scholar
Geweke, J.Measurement of Linear Dependence and Feedback Between Time SeriesJ. Am. Stat. Assoc., 77(1982):304324.CrossRefGoogle Scholar
Ginsburgh, Victor and Michel, Philippe. “Adjustment Costs, Concentration, and Price BehaviorJ. Indust. Econ., 36(1988):477481.CrossRefGoogle Scholar
Holder, Shelby H. Jr. Unpublished data.Google Scholar
Holder, Shelby H. Jr. and Warren Grant, R.. “U.S. Rice IndustryWashington, DC: U. S. Department of Agriculture, Agri. Econ. Rep. No. 444, Aug. 1979.Google Scholar
Holthausen, D.M.Kinky Demand, Risk Aversion, and Price LeadershipInt. Econ. Rev., 20(1978):341348.CrossRefGoogle Scholar
Judge, George G., Griffiths, W.E., Carter Hill, R., Lutkepohl, Helmut, and Lee, Tsoung-Chao. The Theory and Practice of Econometrics, 2nd ed. New York: Wiley & Sons, 1985.Google Scholar
Kardasz, Stanley W. and Stollery, Kenneth R.. “Market Structure and Price Adjustment in Canadian Manufacturing IndustriesJ. Econ. and Bus., 40(1988):335342.CrossRefGoogle Scholar
Markham, J.W.The Nature and Significance of Price Leadership,Am. Econ. Rev., 41(1951):891905.Google Scholar
Means, G.C.The Administered-Price Thesis ConfirmedAm. Econ. Rev., 62(1977):292306.Google Scholar
Nachane, Dilip M., Nadkarni, Ramesh M., and Karnik, Ajit V.. “Co-integration and Causality Testing of the Energy-GDP Relationship: A Cross-Country Study.Appi Econ., 20(1988):15111531.CrossRefGoogle Scholar
Qualls, P.D.Market Stracture and the Cyclical Flexibility of Price-Cost MarginsJ Business. 52(1979):305325.CrossRefGoogle Scholar
Ravallion, M.Testing Market Integration,Am. J. Agr. Econ., 68(1986):102109.CrossRefGoogle Scholar
Rice Miller's Association. Shipments of Milled Rice. Arlington, VA, selected monthly reports.Google Scholar
Ripley, F.C. and Segal, L.. “Price Determination in 395 Manufacturing IndustriesRev. Econ. and Stat., 55(1973):263271.CrossRefGoogle Scholar
Ross, H.N. and Krausz, J.. “Buyers’ and Sellers’ Prices and Administered BehaviorRev. Econ. and Stat, 68(1986):369678.CrossRefGoogle Scholar
Samuelson, P.A.Proof That Properly Anticipated Prices Fluctuate RandomlyIndust. Management Rev., 6(1965):4150.Google Scholar
Saxonhouse, Gary R.Regressions from Samples Having Different CharacteristicsRev. Econ. and Stat., 59(1977):234237.CrossRefGoogle Scholar
Schroeder, Ted C. and Goodwin, Barry K.. “Regional Fed Cattle Price DynamicsWest. J. Agr. Econ., 15(1990):111122.Google Scholar
Sims, C.Macroeconomics and RealityEconometrica, 48(1980): 148.CrossRefGoogle Scholar
Sporleder, T.L. and Chavas, J.P.. “Aspects of Pricing Efficiency and the Value of Information.” Unpublished Working Paper, Department of Agricultural Economics, Texas A&M University, May 1979.Google Scholar
Spriggs, J., Kaylen, M., and Bessler, D.. “The Lead-Lag Relationship Between Canadian and Wheat U.S. Prices.Am. J. Agr. Econ., 64(1982):569572.CrossRefGoogle Scholar
U.S. Department of Agriculture. Rice Market News. San Francisco: Agricultural Marketing Service, selected issues.Google Scholar
Weiss, L.W.Stigler, Kindahl, and Means on Administered PricesAm. Econ. Rev., 67(1977):610619.Google Scholar
2
Cited by

Send article to Kindle

To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Market Structure and Spatial Price Dynamics
Available formats
×

Send article to Dropbox

To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

Market Structure and Spatial Price Dynamics
Available formats
×

Send article to Google Drive

To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

Market Structure and Spatial Price Dynamics
Available formats
×
×

Reply to: Submit a response

Please enter your response.

Your details

Please enter a valid email address.

Conflicting interests

Do you have any conflicting interests? *