Dynamics of Price Adjustment in Qualitatively Differentiated U.S. Markets: The Case of Organic and Non-organic Apples

摘要

Relationships between organic and non-organic counterpart's prices have become complex with changes in the organic market structure. The concern is whether these fluctuations lead to changes in price dynamics between these products. We investigate price dynamics between organic and non-organic apple prices, using an MS-AVECM approach. Additionally, we use Gala, Fuji, and Red Delicious prices to examine whether the use of different varieties leads to different results. The results support the changesin price dynamics of organic and non-organic apples and we find evidence of asymmetric responses to negative and positive price changes for both organic and non-organic apples.