Search

In food retailing a high degree of price dispersion between and within stores and brands is documented, but variations in the dynamics of prices and its causes have not been analysed in great detail. In this paper, we estimate and explain variations of individual cost pass-through processes for the German dairy market. Results for milk and butter indicate significant positive asymmetries in cost pass-through processes, which vary between brands and outlets. In particular, low-price private labels adjust prices faster than high-price national brands; but cost pass-through is slightly more (positive) asymmetrical for private labels than for national brands. [ABSTRACT FROM AUTHOR]

Standard double auctions perfectly mimic the neoclassical idea about the functioning of markets. The efficiency of the market outcome and speed of adjustment towards equilibrium have been studied in the literature to validate economic expectations. However, only a few real world examples outside the financial sector exist. In 2000, Germany implemented a sealed-bid double auction mechanism for trading milk quota. The two main features of this mechanism are: (1) a sealed-bid double auction that produces excess demands that are covered by state reserves free of charge, and (2) a variable price band that is used to exclude price bids above a certain range. To study these regulations a sealed-bid double auction experiment is simulated and run with students. It is shown that the regulations lead to significant losses in welfare that are caused by direct effects and by an imperfect adjustment of individual bidding behaviour. Further, learning effects throughout the experiments appear to be very limited. Thus, complex auction mechanisms may need to be thoroughly tested before being introduced in the real world. [ABSTRACT FROM AUTHOR]

The increase in private labels within the food retailing industry and retailers' high expenditures for establishing them raise a central question: Do consumers really consider private labels "real" brands and do they develop loyalty towards them? We analyse a four-year household panel data set of frozen pizza purchases of 14,000 households in Germany to study differences in consumers' repurchasing behaviour between national brands and private labels. We consider dynamic aspects of repurchase behaviour as well as household characteristics applying a hazard approach. Our results show differences between national brands and private labels. [ABSTRACT FROM AUTHOR]

The article discusses the highlights of the international conference entitled "Agri Food Business: Global Challenges--Innovative Solutions," held in Halle (Saale), Germany from June 25 to 27, 2008. The lecturers, including Keith Wiebe of the Food and Agriculture Organization of the United Nations (FAO), talked about ways to ensure that developing countries will have adequate food supply. The conference also addressed food security and the bio-energy debate.

In a two-step econometric approach that corrects for selectivity bias, we analyse the determinants of the probability of succession and the timing of succession or closure in a unique sample of 233 North-German family farms. We set up the succession decision as an intertemporal optimization problem. The empirical results show that larger and more profitable farms, which are specialized in dairy production are significantly more likely to have an intra-family successor. We find that a nonagricultural education of the current manager or the successor delay succession. When the family decided to stop farming operations, nonagricultural education of the owner delays closure of the farm. Closure occurs earlier if the manager is able to lease out the land in the process of retirement. Although farm households react to incentives originating from tax and pension regulations, many important determinants of succession are beyond the control of policymakers. [ABSTRACT FROM AUTHOR]

Copyright of Schmollers Jahrbuch is the property of Duncker & Humblot GmbH and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines the exercise of market power by German food and beverage export industries over international markets. Two approaches are used: pricing-to-market (PTM) and residual demand elasticity (RDE). We find that, while in some cases the PTM approach indicates market power, the RDE approach does not. Competitive conduct seems to prevail in these industries. The occurrence of PTM in some cases might be explained by fixed contracts, which are often used in the food and beverage export market. [ABSTRACT FROM AUTHOR]