Optimization of individual stages within a production-marketing chain (PMCh) may cause a suboptimal result of the PMCh as a whole. Market imperfections and conflicting interest may be the causal factors. Although vertical integration is often mentioned as the conventional solution, certain...

The impact of cross-sectional aggregation over individual retail stores on the estimation and testing of vertical price transmission between the wholesale and retail levels is investigated using a unique data set of individual retail prices in Germany. Systematic differences between the results...