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Institut d'Economie Industrielle IDEI; Institut National de Recherche Agronomique INRA

November 16-17, 2009
S?minaire INRA-IDEI "Incomplete Pass-Through in Marketing Channels: National and International Trends"
Toulouse, Universit? de Toulouse 1 ‐ Sciences Sociales, Manufacture des Tabacs, France
Price formation in marketing channels is of considerable interest for those involved in these channels but also for public authorities. For instance, farmers frequently protest against intermediaries, and, more specifically, against retailers. They often accuse those players of not (or incompletely) reporting the transmission of shocks impacting producer price to retail price. Public authorities are also involved in designing laws aimed at improving a fair competition between the agents involved in the marketing channels. Various papers have dealt with the issue of incomplete price transmission using either purely statistical tools or more sophisticated structural econometric model. Many papers in agricultural economics investigate the statistical relationships between producer price, wholesale price, and retail price, having as an objective to give a formal test to the widespread opinion that producer price decreases are less completely and frequently transmitted to retail price than producer price increases. Several explanations such as the existence of menu costs, the exercise of market power by intermediaries, or the product perishability, are given when considering the results. But no formal tests are proposed in order to identify the main source among these sources. Analyses, coming from he new empirical industrial organization literature, have been proposed in order to better understand the strategical behaviors of agents involved in marketing channels. Indeed, structural econometric models allow for the identification of parameters characterizing the nature of the relationships between these agents and thus allow for testing hypotheses about the sources of an incomplete price transmission. It is noteworthy that similar approaches have been developed in quantitative marketing when analyzing the impact of brand assortments chosen by retailers on their price policy, and then on the transmission of shocks on wholesale prices to retail prices, or in macroeconomics and international economics when dealing with the low response of export prices to movements in exchange rates. The aim of the workshop is to compare these different approaches of what is usually called incomplete price transmission or incomplete pass-through. [gem?_?? den Informationen des Anbieters - according to site editor's information]
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