Table 3. Cost Pass Through Rate Equations For Two Processors and Two Retailers:
Cost Pass Through Rates |
Vertical Nash |
Value if, Retail |
Vertical |
Value if, Retail |
Vertical Coordination |
Value if, Retail |
Effect of Farm Price Change dp |
(3 a 1 - 2 a 2 )b 2 |
1 3 |
(4 a 1 - 3 a 2)b 2 |
1 4 |
b 2 (2a 1 - a 2) |
1 2 |
Effect of Farm Price Change dp |
(3 b 2 - 2 b,)a, |
1 3 |
(4 b 2 - 3 b1 )a 1 |
1 4 |
a 1(2 b 2 - b1) |
1 2 |
Effect of Firm 1 Specific Cost dp dm1 |
3 a 1 b 2 |
1 3 |
4 a 1 b 2 |
1 4 |
2 a 1 b 2 |
1 2 |
9 a 1 b 2 - 4 a 2 b1 |
16 a 1 b 2 - 9 a 2 b1 |
4 a 1 b 2 - a 2 b1 | ||||
Effect of Firm 1 Specific Cost dp dm1 |
— 2 a 1 b |
0 |
- 3 a 1 b1 |
0 |
- a 1 b1 |
0 |
9 a 1 b 2 - 4 a 2 b1 |
16 a 1 b 2 - 9 a 2 b1 |
4 a 1 b 2 - a 2 b1 | ||||
Effect of Firm 2 Specific Cost dp dm 2 |
— 2 a 2 b 2 |
0 |
- 3 a 2 b 2 |
0 |
- a 2 b 2 |
0 |
9 a 1 b 2 - 4 a 2 b1 |
16 a 1 b 2 - 9 a 2 b1 |
4 a 1 b 2 - a 2 b1 | ||||
Effect of Firm 2 Specific Cost dp dm 2 |
3 a 1 b 2 |
1 3 |
4 a 1 b 2 |
1 4 |
2 a 1 b 2 |
1 2 |
9 a 1 b 2 - 4 a 2 b1 |
16 a 1 b 2 - 9 a 2 b1 |
4 a 1 b 2 - a 2 b1 |
More intriguing information
1. The name is absent2. Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from the German Brewing Industry
3. Evidence on the Determinants of Foreign Direct Investment: The Case of Three European Regions
4. Are combination forecasts of S&P 500 volatility statistically superior?
5. Can a Robot Hear Music? Can a Robot Dance? Can a Robot Tell What it Knows or Intends to Do? Can it Feel Pride or Shame in Company?
6. Nonparametric cointegration analysis
7. IMPROVING THE UNIVERSITY'S PERFORMANCE IN PUBLIC POLICY EDUCATION
8. The name is absent
9. A Consistent Nonparametric Test for Causality in Quantile
10. The name is absent