Fair Pricing Mechanics
| dc.creator | Cotterill, Ronald | |
| dc.date | 2017-04-01T16:50:37Z | |
| dc.date.accessioned | 2026-07-09T08:00:49Z | |
| dc.description | General Concept: Let’s look at a 200% price collar, that is the retail price can be no more than twice the raw fluid price paid to farmers. (Mass. Bill) Assume: The retail price is $3.00 and the raw price is $1.00 per gallon (near today’s situation). To comply, the channel firms can: 1) Cut the retail price to $2.00. Note: This leaves them $1.00 margin. 2) Raise the farm price to $1.50 by paying a 50¢ over order premium (O.O.P.) Note: This leaves them $1.50 margin. Conclusion: Under this policy processors and retailers will raise raw price by paying over-order premiums. | |
| dc.identifier | doi:10.22004/ag.econ.170035 | |
| dc.identifier | https://ageconsearch.umn.edu/record/170035/files/ip34.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/170035 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/594664 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/170035 | |
| dc.title | Fair Pricing Mechanics | |
| dc.type | Text |