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On Perishability and Vertical Price Transmission: empirical evidences from Italy

Santeramo, Fabio Gaetano and von Cramon-Taubadel, Stephan (2016): On Perishability and Vertical Price Transmission: empirical evidences from Italy. Forthcoming in: Bio Based Applied Economics No. 2

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Abstract

Studies on the causes for asymmetries in vertical price transmission date back to decades ago, but the attention of theorists and empirical economists is still vivid. In particular the role of perishability is not fully defined. We investigate the vertical price transmission for a heterogeneous group of fruits and vegetables that differ for their degree of perishability. The error correction model we estimate allows toconclude that asymmetries in vertical price transmission tend to vanish for perishable products.

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