In this opening chapter we would like to put the problem of market interdependence back in the context of free market economy. First we briefly discuss its relevance to price theory. Then we stress a few basic facts concerning commodity markets; we elaborate in particular upon the various stages at which prices may be registered. We sketch the main methodological ideas on which our approach is based. Finally, we present a number of empirical observations regarding both the patterns of price differentials and the historical process of price convergence.
KeywordsTransport Cost Market Integration Commodity Market Export Price Price Differential
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