Retailer Pricing Practices for Fresh Avocados

Li, Lan, Hoy F. Carman, and Richard J. Sexton

from ARE Update Vol. 10, No. 1, Sept/Oct, 2006

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Abstract

Retailers' pricing practices for Hass avocados depart considerably from the behavior predicted by a model of competitive pricing. Retail prices within a market area exhibit considerable heterogeneity and little correlation with the farm price. Further, only about a third of farm price changes are transmitted to consumers. Retail prices for avocados tend to be lower during peak-demand periods. Finally, evidence suggests that outdoor and radio promotions by the California Avocado Commission have been effective in raising demand for avocados in the cities where the campaigns have been conducted.

Keywords

avocado, retailer, price, demand, margins, industry

Citation

Li, Lan, Hoy F. Carman, and Richard J. Sexton. "Retailer Pricing Practices for Fresh Avocados." ARE Update 10(1)(2006):5-8. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2006/10/1/retailer-pricing-practice/