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Asymmetric Prices: Implications on Trader’s Market Power in Philippine Rice


Contrary to the commonly held notion that the market power exercised by a handful of unscrupulous traders in the local market has resulted unnecessary hike in prices, this paper presents evidence against this allegation. Findings show that market shocks originate at the farm level that are transmitted as price changes at the wholesale market before it is reflected at the retail market. In addition, symmetry test cannot confirm the presence of market power among Filipino traders. Nevertheless, estimation of price symmetry model does not lend credence to the claim that government’s absence in the market can lead to chaos.

Citations

This publication has been cited time(s).

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  6. Abrigo, Michael R.M., 2016 "Who weans with commodity price shocks? Rice prices and breastfeeding in the Philippines" , Philippine Institute for Development Studies

  7. Galang, Ivory Myka, 2014 "A spatial integration analysis of the regional fertilizer markets in the Philippines" , Philippine Institute for Development Studies

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Jul 28, 2013