Master of Science / Department of Agricultural Economics / Glynn T. Tonsor / The purpose of this analysis is to examine two aspects of price analysis in the stocker industry in order to better assist producers making purchasing decisions. One analysis looks at forecasting value of gain, while the second looks at drivers of price differentials between calves and yearlings. When analyzing forecasts on value of gain, weekly data was collected to compare a naïve approach and futures market implied basis-adjusted approaches that include one to five years of historical average basis. This allowed for the assessment of five different models for nine scenarios. The conclusions from this were inconsistent with what was hypothesized and the naïve approach was either worse or no better when compared to using the futures market implied basis-adjusted approaches to forecast value of gain. The drawback to this analysis was that it was solely influenced by error on forecasting the selling price and in future work a forecasting horizon will be incorporated on the buying price. In order to analyze the price premiums and discounts between calves and yearlings, a confirmation, update and expansion were completed following monthly models by Marsh (1985). Three elements are considered when predicting price premiums and discounts between two weight classes; cost of gain (proxied by corn price), slaughter price, and seasonality. Estimated models in the confirmation for years 1972 to 1982 and the update for years 1973 to 2013, show that premiums and discounts are influenced by expected changes in corn price and/or slaughter price, but not highly affected by seasonality. However, in the expansion for years 1993 to 2013, corn price, slaughter price, and seasonality were all significant to the models and in higher magnitude when compared to those results in the confirmation and update. Understanding the relationships between all variables in these models allows producers in the cattle-feeding industry to make management decisions based on current marketing conditions and trends.

During the past decade, the law of one price and purchasing power parity theories have been empirically tested for their validity. IKEA, as a world famous furnishing company, sells identical products in different countries with different prices. The main emphasis of this paper is placed on the problem of if and why IKEA’s pricing actually departs from the law of one price and purchasing power parity. We focus on the following three main explaining factors: the existence of trade cost, the influences of non-traded parts cost of the goods, and other possible pricing behaviors of the firms. To be able to fulfill our objectives, a regression model combined with the theoretical framework and the institutional framework of IKEA have been used in this paper. The remarkable outcomes are gotten as below: (Ⅰ) The price variation still exist after removing the influences of transportation cost, trade barriers, taxes. (Ⅱ) Higher productivity contributes to higher national prices, but higher labor cost has no significant effect on price variation. (Ⅲ) Price discrimination and special market strategies in specific areas do play a role in the price variation.

This study is the result of two separate surveys of the retail grocery stores in Logan, Utah. The primary purpose of these surveys was to make a detailed study of price differentials as they exist between the stores of different kind, class, location and size. Logan was chosien for this survey for a number of reasons: (1) It is typical of many Rocky Mountain cities for size. (2) There is no one industry that completely dominates the economy of the city. (3) There are sufficient stores in kind and number to give the necessary data. (4) Besides the local independent stores that are in operation, there is a national chain system represented by Safeway Stores, Inc. and a small state chain represented by the American Food Store. The problem was to survey the Logan city grocery stroes for price data on food commodities in sufficient number to indicated the price differentials that exist within the stores. To facilitate this the local stores were segregated into four distinct classes, namely: (1) national chains, (2) a small state chain, (3) large city independents, and (4) neighborhood stores. The prices found in the chain systems were used as a bases for the comparisons that are made between both the chain stores and the two groups of independent stores. The study has proven valuable in that price differentials have been discovered to exist between the various commodity groups, as well as within the individual items. These differentials have varied with the commodity and within the different classifications of stores. Many of the pricing policies that are being practiced in the Logan stores are representative of market conditions as they exist in other cities within the Rocky area and might justifiably be applied to these communities with the expectations that similar results would occure.