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- Title
Does the internet bring food prices closer together? Exploring search engine query data in Iran.
- Authors
Zamani, Omid; Bittmann, Thomas; Loy, Jens‐Peter
- Abstract
Modern communication technologies make information more easily and quickly accessible, leading to more transparent and competitive markets. Based on a theoretical model, this paper provides new empirical evidence on the potential impact of online search intensity on asymmetric cost pass‐through. Prices often move as 'rockets and feathers': they rise quickly in response to cost increases and they fall slowly in response to cost reductions. A panel threshold error correction model is applied to weekly producer and retail prices of chicken and mutton in Iran. The results suggest that the volume of online searches is associated with a more complete and less asymmetric cost pass‐through from farmgate to retail prices. Thus, online platforms and search engines have the potential to increase competition by bringing prices closer together and reducing profit margins.
- Subjects
IRAN; FOOD prices; SEARCH engines; WHOLESALE prices; PROFIT margins; COST control
- Publication
Journal of Agricultural Economics, 2024, Vol 75, Issue 2, p688
- ISSN
0021-857X
- Publication type
Article
- DOI
10.1111/1477-9552.12580