Integrated markup rules for optimal pricing decisions in expanding markets for organic produce

dc.contributor.author	Lohr, L	en
dc.contributor.author	Park, T	en
dc.date.accessioned	2014-06-06T06:43:48Z
dc.date.available	2014-06-06T06:43:48Z
dc.date.issued	1999	en
dc.identifier.issn	00036846	en
dc.identifier.uri	http://62.217.125.90/xmlui/handle/123456789/1465
dc.relation.uri	http://www.scopus.com/inward/record.url?eid=2-s2.0-0032818943&partnerID=40&md5=9ec84ecb843d8c06ecb622c698daac0e	en
dc.subject.other	food market	en
dc.subject.other	organic farming	en
dc.subject.other	price dynamics	en
dc.title	Integrated markup rules for optimal pricing decisions in expanding markets for organic produce	en
heal.type	journalArticle	en
heal.publicationDate	1999	en
heal.abstract	In expanding markets, firms face uncertainty about demand response to changing conditions and the appropriate pricing response. Inclusion of retail demand factors in explaining markup decisions by wholesalers is crucial to accurate evaluation of the effects of price and market changes on profitability. We apply an integrated demand and markup model to markets for organic broccoli and carrots where wholesalers set markups facing retail demand. The estimated integrated system includes cross-equation restrictions on organic and conventional prices received from retail, publicity about food safety scares and availability of a competing certification programme. The results show that organic wholesalers behave strategically in response to observable demand factors as they expand into fresh produce markets. Wholesalers arbitrage markups across items to increase market share, combining crop-specific and overall market information to decide on appropriate responses. Wholesalers also attempt to moderate markups in response to demand fluctuations in order to smooth market development.	en
heal.journalName	Applied Economics	en
dc.identifier.issue	7	en
dc.identifier.volume	31	en
dc.identifier.spage	885	en
dc.identifier.epage	892	en