Asymmetric Price Transmission and Market Power: A Case of the Aquaculture Product Market in China

Round 1

Reviewer 1 Report

author (s) of this study explored the relationship between asymmetric price transmission and market power by usi the nonlinear autoregressive distributed lag model on a secondary data of prices from 2009- 2021. As author (s) have described aquatic product market is an important sector of the economy, and volatility of prices are not good for both producer and consumers. Therefore, dertmination of who has market power and how that power impacts volatility is critical. This study carries a significant importance due to reasons described before. My observations/recommednations are as follows;

-most of the statement in introduction and literature are author(s) opinion without any literary support. Hence, those statement has no scientific worth as there are no results to support them. I would suggest author (s) to cite relevant studies. 

-line66-74: no references cited 

-line 154-160 : no reference cited

-figure 1: sources of data is missing, axis titles are missing.

-line 134-135: there is plethora of  studies on this subject conducted in different parts of the  world using quantitative data. Author (s) should avoid sweeping statements. 

-Why author choose NARDl over previously used models, justification is needed. 

-Hypothesis 1: is developed without any background literature/theory. 

same for hypothesis 2. 

-Line 211: the statement is based on literature or just author (s)' opinion. if no evidence to support this, then remove it.

-Discusison: author (s) need to compare their results with previous studies. 

Author Response

Please see the attachment.

Author Response File: Author Response.docx

Reviewer 2 Report

This paper takes carp as an example to study the transmission mechanism of wholesale and retail prices based on monthly prices of wholesale and retail segment. The nonlinear autoregressive distributed lag model (NARDL) and exponential generalized autoregressive conditional heteroscedastic model (EGARCH) are used to study the relationship between asymmetric price transmission and market power.The price mechanism behavior of aquatic products studied and analyzed in this paper is of positive significance to the current operation practice of aquatic products market stakeholders and the management of agricultural administrative departments to stabilize the agricultural products market and ensure the implementation of "vegetable basket" project.  The issue is closely related to market significance. The structure of the paper sounds clear in logic. 

To publish the paper is my suggestion.

 

Improvement suggestion:

1. Try to supplement some description of relevant operational practices concerned with private business and enterprises of aquatic products. According to The State Council on October 12, 2022, China has 163 million market entities, including more than 51 million enterprises and 109 million privately-owned business. Under the current pressure of the epidemic, supplement the weakness  in the operation of aquatic products market stakeholders and the influencing factors of product price in practice.

 

2. Try to supplement some description of the impact of macroeconomic regulations. For example: The State Council executive meeting on August 24, 2021, decided to get on with the "policy package". in this year, 10 billion yuan agricultural subsidies will be issued besides 30 billion which has been provided. The fiscal and monetary policies also has a transmission effect on the market price of aquatic products by optimizing the allocation of resources and the restructuring of production factors.

Author Response

Please see the attachment.

Author Response File: Author Response.docx

Reviewer 3 Report

The literature review needs more relevant references 

The discussion part should elaborate more on the research findings, and more references should be added in this part.

Separate the discussion and conclusion parts.

 

Comments for author File: Comments.pdf

Author Response

Please see the attachment.

Author Response File: Author Response.docx