Governance Reform of German Food Safety Regulation - Bodo Steiner (original) (raw)
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Mimeo, University of Kiel., 2000
We examine the effects of the first BSE crisis in Germany on the price setting behaviour in the food marketing chain. Average prices are employed to conduct a time series approach for examining the impact of the BSE scare on prices. Individual grocery store prices are used for an investigation into the pricing strategies for individual beef cuts. Our results suggest that the BSE crisis has not led to significant reductions in consumer prices of beef. Considering the marketing margins, we find that consumer-wholesale price margins were largely unaffected by BSE, whereas the wholesale-producer price margin expands by 0.8 DM per kilo within a year after the emergence of BSE. Our results suggest that across all retailer types, retailers reacted with more price increases than price decreases to the BSE scare. A pricing strategy that embraces declining price variability between retailers of the same type, possibly reflecting a more unified pricing strategy, can only be identified in the case of butchers.