Title
Incomplete transmission of coffee bean prices : evidence from The Netherlands
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Subject
Economics
Biology
Source (journal)
European review of agricultural economics
Volume/pages
27(2000) :1 , p. 1-16
ISI
000086030400001
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
This paper seeks to explain the incomplete transmission of coffee bean prices to consumer prices. We adopt and estimate an aggregate model of oligopolistic interaction. We obtain demand and cost parameter estimates that are consistent with conventional wisdom in the industry. Conduct is estimated to be relatively competitive. Our results imply that the relatively large share of costs other than bean costs accounts for the greater part of the incomplete price transmission. The remaining part is due to mark-up absorption, but is less important as oligopolistic interdependence is relatively competitive.
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