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-ɪ

(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. Educational Inequalities Among School Leavers in Ireland 1979-1994
2. Nurses' retention and hospital characteristics in New South Wales, CHERE Discussion Paper No 52
3. Gianluigi Zenti, President, Academia Barilla SpA - The Changing Consumer: Demanding but Predictable
4. The Shepherd Sinfonia
5. The name is absent
6. Models of Cognition: Neurological possibility does not indicate neurological plausibility.
7. What Lessons for Economic Development Can We Draw from the Champagne Fairs?
8. The name is absent
9. CAPACITAÇÃO GERENCIAL DE AGRICULTORES FAMILIARES: UMA PROPOSTA METODOLÓGICA DE EXTENSÃO RURAL
10. For Whom is MAI? A theoretical Perspective on Multilateral Agreements on Investments
11. Top-Down Mass Analysis of Protein Tyrosine Nitration: Comparison of Electron Capture Dissociation with “Slow-Heating” Tandem Mass Spectrometry Methods
12. Macroeconomic Interdependence in a Two-Country DSGE Model under Diverging Interest-Rate Rules
13. Changing spatial planning systems and the role of the regional government level; Comparing the Netherlands, Flanders and England
14. Education as a Moral Concept
15. SLA RESEARCH ON SELF-DIRECTION: THEORETICAL AND PRACTICAL ISSUES
16. Political Rents, Promotion Incentives, and Support for a Non-Democratic Regime
17. On the Integration of Digital Technologies into Mathematics Classrooms
18. The name is absent
19. ISSUES IN NONMARKET VALUATION AND POLICY APPLICATION: A RETROSPECTIVE GLANCE
20. Økonomisk teorihistorie - Overflødig information eller brugbar ballast?