PRICE DISCRIMINATION AND PRICING-TO-MARKET BEHAVIOR OF BLACK SEA REGION WHEAT EXPORTERS

Abstract

Substantial changes in the world wheat market have resulted in a shift in the market shares of the main wheat exporting countries. Since 2002, Kazakhstan, Russia, and Ukraine (KRU) have become important wheat exporters on the world market, and their pricing behavior has become a vital issue. By applying the pricing-to-market model to wheat exports, this study analyzes the price-discriminating behavior of KRU wheat exports from 1996 to 2012. The results demonstrate that KRU are able to exercise price discrimination in some importing countries, but in most they either face perfect competition or set common markups in imperfectly competitive markets.