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Market Structure and the Dynamics of Retail Food Prices

Published online by Cambridge University Press:  10 May 2017

Robert D. Weaver ,
Peter Chattin  and
Aniruddha Banerjee
Robert D. Weaver
Affiliation:
The Pennsylvania State University
Peter Chattin
Affiliation:
The Pennsylvania State University
Aniruddha Banerjee
Affiliation:
The Pennsylvania State University
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Abstract

The effect of retail grocery market structure on the speed of adjustment of retail food prices to changes in producer prices, real wages, and the cost of energy was examined for SMSAs. Evidence failed to support the implication of the Mason-Bain paradigm that increased concentration reduces market efficiency as reflected in speed of retail price adjustment. Evidence of strong intertemporal relationships between change in producer prices and retail prices found for the categories meat, poultry, fish, eggs and cereal and baker products provide support to the hypothesis of cost-push inflation.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 18 , Issue 2 , October 1989 , pp. 160 - 170
Copyright
Copyright © 1989 Northeastern Agricultural and Resource Economics Association 

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