In this paper we use cointegration analysis and the Law of One Price to test for proportionality between hake prices at
different stages along the value chain in the French hake market. Cointegration analysis is an appropriate means of testing for
price proportionality when price series are non-stationary, as was found to be the case for hake prices in France. Estimates of the
relative size of mark-ups along the value chain are calculated by applying the Law of One Price to the cointegrated price series.
Finally, we test for weak exogeneity of hake prices in order to determine how price information is transmitted through the value
Hartmann, J., S. Jaffry & F. Asche. Price Relationships along the Value Chain: An Analysis of the Hake Market in France. In : Microbehavior and Macroresults:Proceedings of the Tenth Biennial Conference of the International Institute ofFisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA.Compiled by Richard S. Johnston and Ann L. Shriver. InternationalInstitute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.