Explaining output price heterogeneity in Dutch horticulture

Abstract Recent empirical literature pays increasing attention to farmer‐retail power relations in agricultural supply chains, yet seems to neglect potential differences between prices that primary producers receive for their products. Via both a Markov chain analysis and a hybrid panel data model, we empirically test whether primary producers receive prices in a consistent way and what explains any price differences. Using a unique data set containing individual farm‐specific output prices in various horticultural markets, we show substantial price dispersion across farms and reveal relations... Mehr ...