Food Scares, Market Power and Price Transmission: The UK Bse Crisis

Posted: 29 Feb 2008

See all articles by T. A. Lloyd

T. A. Lloyd

University of Nottingham

Steve McCorriston

University of Exeter Business School

C. W. Morgan

University of Nottingham

A. J. Rayner

University of Nottingham

Date Written: June 2006

Abstract

This paper is concerned with the impact of food scares, principally the BSE crisis in the UK, and focuses on price transmission in vertically related markets. We show that if market power has an effect on the farm-retail margin, this determines the specification of the cointegrating relationship and thus provides a test of market power. The results for the UK beef chain suggest that we cannot reject the importance of market power. The impact of the BSE crisis on farm prices is found to be more than double that on retail prices, thus corroborating public concerns regarding a differential impact of food scares on retailers and producers.

Keywords: BSE crisis, price transmission, market power

Suggested Citation

Lloyd, T. A. and McCorriston, Steve and Morgan, Christopher Wyn and Rayner, A. J., Food Scares, Market Power and Price Transmission: The UK Bse Crisis (June 2006). European Review of Agricultural Economics, Vol. 33, No. 2, pp. 119-147, 2006, Available at SSRN: https://ssrn.com/abstract=914819 or http://dx.doi.org/10.1093/erae/jbl001

T. A. Lloyd (Contact Author)

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Steve McCorriston

University of Exeter Business School ( email )

Streatham Court
Xfi Building, Rennes Dr.
Exeter, EX4 4JH
United Kingdom

Christopher Wyn Morgan

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

A. J. Rayner

University of Nottingham

University Park
Nottingham, NG8 1BB
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
841
PlumX Metrics