Price transmission is one of the factors that affect producers, marketing orders and consumers’ welfare. Asymmetric price transmission creates profit for marketing orders by increasing marketing margin. In this study, a model has developed for investigating price transmission in Iranian egg market. Price transmission tests are investigated on base of error correction model by using weekly of egg and its inputs prices during 2001-05. The results of estimating econometrics model show that price transmission is symmetric in long run but is asymmetric in short run. In this study, elasticities of price transmission from farm price to retail price and from input prices to the retail price in short run and long run were estimated too. Estimated elasticities show that increasing farm price and input prices transmit to retail price sooner than decreasing farm price and input prices. For the reason of asymmetric price transmission in egg market, consumers pay most expensive price from final price, and marketing agents gain profit. The results of this study show that government’s policy have not been successful in decreasing the price fluctuations in Iranian egg market.
)