Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-20T09:22:34.139Z Has data issue: false hasContentIssue false
  • English
  • Français

The Relationship Between Managerial Heuristics and Economics in Pricing Retail Meats

Published online by Cambridge University Press:  28 April 2015

Michael R. Reed  and
Lynn W. Robbins
Michael R. Reed
Affiliation:
Department of Agricultural Economics, University of Kentucky
Lynn W. Robbins
Affiliation:
Department of Agricultural Economics, University of Kentucky
Get access Rights & Permissions [Opens in a new window]

Abstract

This study develops a theoretical model of the multiproduct firm which allows for imperfect competition in the output market. Hypotheses are tested for retail meat prices concerning the degree and speed of price transmission, the effects of interfirm competition, and the interrelationship between prices within the store. Empirical results indicated that meat prices within a store were highly interrelated. Further, the firm was found to be very responsive to prices of competitors in the short run, but more responsive to wholesale price changes in the long run.

Keywords

imperfect competitionmeat pricesmultiproduct firmsystematic pricing
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 17 , Issue 2 , December 1985 , pp. 87 - 96
Copyright
Copyright © Southern Agricultural Economics Association 1985

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Buzzel, Robert D., Salmor, Walter J., and Vancil, Richard F.. Product Profitability Measurement and Merchandising Decisions, A Pilot Study in Retail Food Stores. Boston: Harvard University, 1965.Google Scholar
Daly, Rex F. “Demand for Farm Products at Retail and at the Farm Level, Some Empirical Measurements and Related Problems.” J. Amer Stat. Assn., 53(1958):656–668.Google Scholar
Gray, Roger W. and Anderson, Roice. “Advertised Specials and Local Competition Among Supermarkets.” Food Research Institute Studies, 3(1962):125–139.Google Scholar
Holdren, Bob R.The Structure of a Retail Market and the Market Behavior of Retail Units, Ames, Iowa: The Iowa State University, 1968.Google Scholar
Holton, Richard H. “Price Discrimination at Retail: The Supermarket Case.” J. Industr. Econ., 6(1958):13–32.CrossRefGoogle Scholar
Lamm, R. McFall and Westcott, Paul C.. “The Effects of Changing Input Costs on Food Prices.” Amer. J. Agr. Econ., 63(1981):187–196.CrossRefGoogle Scholar
Mann, Jitendar S. and St. George, George E.. “Estimates of Elasticities for Food Demand in the United States.” USDA, ERS Tech. Bull. No. 1580, 1978.Google Scholar
Marion, Bruce W., Mueller, Willard F., Cotterill, Ronald, Geisthman, Frederick, and Schmelzer, John. The Food Retailing Industry: Market Structure, Profits and Prices New York: Prager Publishers, 1979.Google Scholar
Padberg, Daniel I.Economics of Food Retailing, Ithaca, NY: Cornell University Press, 1968.Google Scholar
Progressive Grocer, Stanford, Connecticut;, April, 1985.Google Scholar
Reed, Michael R. and Robbins, Lynn W.. “An Analysis of Supermarket Advertising Patterns.” J. of Food Distrib. Res. 12(1981):19–29.Google Scholar
Sturgess, I. M. “A Study of Retail Prices of Groceries in Relation to Standard Price Theory.” Review of Marketing and Agricultural Economics, 38(1970):170–189.Google Scholar
Sun, Theresa Y. “Forecasting Retail Values and Spreads for the Market Basket of U.S. Farm Foods.” USDA, ERS Tech. Bull. No. 1578, 1977.Google Scholar
Waldorf, William H. “The Demand for and Supply of Food Marketing Services: An Aggregate View.” J Farm Econ, 48(1966):42–60.CrossRefGoogle Scholar