The objectives of this study were threefold: (1) to determine a suitable model for defining the farm-retail price spread for two percent and whole milk in seven cities (Atlanta, Boston, Chicago, Dallas, Hartford, Seattle, St. Louis); (2) to discover the determinants that contribute significantly to the price spreads of two percent and whole milk in seven selected cities, and (3) to calculate the elasticity of price transmission for whole and two percent milk in the seven cities. The work of Wohlgenant and Mullen in -Modeling the Farm-Retail Price Spread for Beef" was followed in order to determine a suitable model. The two specifications considered were the markup pricing model and the relative price spread model. Factors considered to affect the farm-to-retail price spread of whole and two percent milk were the retail price for whole and two percent milk, marketing costs such as fuel and labor costs, milk production, seasonality, and structural change. Monthly data were collected over a 106 month period from January 1994 through October 2002 for the selected cities in this investigation. Principal findings from the analysis are the following. The markup pricing model was determined to be the better model for both products throughout the seven cities through the examination of the Schwarz and Akaike criteria of model selection. The driving forces of the farm-to-retail price spread for whole and two percent milk in most cites were retail price and seasonality. In addition, the price spreads in the Northeast were significantly lower before and during the implementation of the Northeast Dairy Compact compared to the period corresponding to the termination of the program. The price spreads of both whole and two percent milk were highest in the third quarter and lowest in the fourth quarter. Elasticities of price transmission, measures of the sensitivity of retail prices to changes in farm prices, were higher in all regions for two percent milk compared to whole milk. The range of the elasticities of transmission for whole milk was from 0.37 (Hartford) to 2.54 (Dallas) and from 0.39 (Hartford) to 3.66 (Dallas) for two percent milk.

This paper examines the relative price spreads between dual-class shares issued by the same firm on the Swedish market in order to investigate if a voting premium exists and what factors contribute to it. Previous research has found diverging explanations for the variation in price spreads between dual-class shares. Some find explanatory power in the concentration of ownership whilst others find trading costs and liquidity to determine the size and direction of the voting premium. This study tests factors of control and liquidity against the relative price spread in the Swedish market and in accordance with earlier research, the results indicate that a statistically significant voting premium exists in Sweden, although it is relatively small in comparison to many other markets. The paper contributes to the current pool of research by the choice of market, and by adding up-to-date information regarding the voting premium as well as evidence that increased domestic institutional ownership affects the voting premium negatively. At the same time, foreign institutional ownership has an opposite effect and leads to increased price differences between share classes. The general conclusion of this paper is that while some factors related to control and ownership concentration show significance long-term, other unobserved aspects could provide greater explanatory power of the voting premium in the short term.