Average cost pricing in the compound feed industry

Abstract

Considers the incidence of average cost pricing in the compound feed industry in the context of strategic and marketing aspects of firms′ behaviour. The empirical analysis uses a cross‐section econometric model derived from the Koutsoyiannis model of average cost pricing and incorporating assumptions about cost and price adjustment. The model is estimated using primary data on prices and costs for a sample of firms in the North of England for main categories of compound feed products. The results indicate support for the hypothesis in association with these adjustment factors which accommodate both cost and strategic influences within product segments of the market.

Citation

Ness, M.R. and Walker, S. (1995), "Average cost pricing in the compound feed industry", British Food Journal, Vol. 97 No. 1, pp. 27-35. https://doi.org/10.1108/00070709510077953