Price Asymmetry in the U.S. Pork Marketing Channel

Abstract

Abstract This paper tests the existence of price asymmetry within the U.S. pork marketing channel using an asymmetric pricing model. Asymmetry is tested both for the sum of price adjustments and the speed of price adjustments. Results show that wholesale (packer) prices respond similarly to farm price decreases and increases. Also, there is no significant difference between retailers' response to wholesale price increases and their response to wholesale price decreases.