Marketing Order Impacts on Farm‐Retail Price Spreads: The Suspension of Prorates on California‐Arizona Navel Oranges
1989
Thompson, Gary D. | Lyon, Charles C.
The 1985 suspension of the prorate on California‐Arizona navel oranges decreased FOB retail price spreads in Atlanta and San Francisco by about 1.3 cents per pound. Four reduced‐form models of price spreads were estimated as seemingly unrelated regressions for price spreads in Atlanta, Dallas, and San Francisco. Nested and non‐nested hypothesis testing procedures indicated a markup model as the most plausible one for explaining short‐run changes in price spreads.
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