Table 1 The impact of various wholesale market structures on farm and retail price and processors’ and retailers’ profit

Farm price increase (∂P_f/∂M)

∂P_{f, OP}/∂M > ∂P_{f, CM}/∂M

Retail price decrease (|∂P_r/∂N|)

|∂P_{r, OS}/∂N| > |∂P_{r, CM}/∂N|

Processors’ profit margin increase (∂δ_w/∂N)

∂δ_{w, OS}/∂N > ∂δ_{w, CM}/∂N

Retailers’ profit margin increase (∂δ_r/∂M)

∂δ_{r, OP}/∂M > ∂δ_{r, CM}/∂M

Farm price (P_f)

P_{f, OP} < P_{f, CM}, P_{f, OS} < P_{f, CM}, P_{f, OP} ⋚ P_{f, OS}

Retail price (P_r)

P_{r, OP} > P_{r, CM}, P_{r, OS} > P_{r, CM}, P_{r, OP} ⋚ P_{r, OS}

Processors’ profit margin (δ_w)

δ_{w, OP} > δ_{w, CM} > δ_{w, OS}

Retailers’ profit margin (δ_r)

δ_{r, OP} < δ_{r, CM} < δ_{r, OS}