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We are grateful to the anonymous referee for thorough and insightful comments. We also thank the participants of the special Scanner Conference in Toronto, the Marketing Science conference in Tucson, the Southern Economic Association meeting, the American Economic Association meeting, the Marketing and the Economics and Legal Organizations Workshops at the University of Chicago, and Economics Workshops at the Federal Reserve Bank of Atlanta, Bar-Ilan, Emory, Georgia State, and York Universities, and the Georgia Institute of Technology for useful comments and suggestions. In addition, we thank the following individuals: Joshua Aizenman, Peter Aranson, Martin J. Bailey, Samiran Banerjee, George Benston, Dennis Carlton, Robert Carpenter, Pradeep Chintagunta, Robert Chirinko, Leif Danziger, Hashem Dezhbakhsh, Jo Anna Gray, Steve Hoch, Abel Jeuland, Eric Leeper, Andrew Levin (the discussant at the American Economic Association meetings), Georg Müller, Leonard Parsons, Peter Pashigian, Sam Peltzman, Joel Shrag, Carol Simon, Ruey Tsay, and Charles Weise (the discussant at the Southern Economic Association meetings) for their comments and suggestions. We would like to thank also numerous individuals from the Florida Department of Citrus, University of Florida Center for Citrus Research and Education, the Florida Agricultural Statistics Service, and Produce Manufacturing Association for patiently answering many of our questions and providing some of the data reported in this study. In particular, we would like to mention John Attaway, Sandy Barros, Carolyn Brown, Steve Irvin, Ed Moor, Ron Muraro, Bill Stinson, and Lola VanGilst. Helmut Lütkepohl kindly provided a Gauss program for doing the estimations performed in this paper. Particular thanks to Tao Zha for comments and for answering our questions. We gratefully acknowledge the research assistance of Ileana Aguilar, Joe Nunes, Yihong Xia, and Kang Kang Xu. Finally, we thank the University of Chicago for financial support and for providing access to their database. The third author acknowledges financial support also from Bar-Ilan University and the Science Division of the Israeli Ministry of Klita. All authors contributed equally to the paper: we rotate the order of coauthorship. The usual disclaimer applies.