Dynamic Explanations of Industry Structure and Performance



Table 3. Cost Pass Through Rate Equations For Two Processors and Two Retailers:

Cost Pass Through Rates

Vertical Nash

Value if, Retail
Monopolies
a2 and b1 = 0

Vertical
Stackelberg

Value if, Retail
Monopolies
a2 and b1 = 0

Vertical

Coordination

Value if, Retail
Monopolies
a2 and b1 = 0

Effect of Farm Price Change dp
on Retail Price of 1             d

(3 a 1 - 2 a 2 )b 2
9 a 1 b 2 - 4 a 2 b1

1

3

(4 a 1 - 3 a 2)b 2
16 a 1 b 2 - 9 a 2 b1

1

4

b 2 (2a 1 - a 2)
4 a 1 b 2 - a 2 b1

1

2

Effect of Farm Price Change dp
on Retail Price of 1            ~m^

(3 b 2 - 2 b,)a,
9 a 1 b 2 - 4 a 2 b1

1

3

(4 b 2 - 3 b1 )a 1
16 a 1 b 2 - 9 a 2 b1

1

4

a 1(2 b 2 - b1)
4 a 1 b 2 - a 2 b1

1

2

Effect of Firm 1 Specific Cost dp
Change on Retail Price 1        ----

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
Change on Retail Price 2       ----

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
Change on Retail Price 1        -----

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
Change on Retail Price 2       -----

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 absent
2. 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