A markup over average cost pricing rule for meat and poultry in the United States

This paper tests the hypothesis that meat and poultry wholesalers choose their inventory levels together with wholesale price so as to maximize profit made over the sales time of their stock. The behavioral assumption predicts that markup over average cost will match the inverse of the price elasticity of the sales time of inventory. Price elasticity of inventory sales time is estimated for beef, pork and poultry accounting for the simultaneity between these pricing decisions by adopting a systems approach. The estimated range for the inverse of these elasticities includes all the markups applied over the sample range of the time series.


Issue Date:
1993-03
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/173115
Published in:
Agricultural Economics: The Journal of the International Association of Agricultural Economists, Volume 08, Issue 3
Page range:
227-242
Total Pages:
16




 Record created 2017-04-01, last modified 2017-08-22

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