Journal of Science and today's world 2013, volume 2, issue 2, pages: 184-198 184 | Page Scholar Journal Available online: www.journalsci.com Journal of Science and today's world ISSN 2322-326X Research Article Study of transmission of price from farm to retail shops in saffron market (Case study Fars province) Javad Torkamani, Niloofar Pejman  , Nematollah Mousavi Department of agricultural economics, Marvdasht branch, Islamic Azad University, Marvdasht, Iran Received: 1 February 2013 / Accepted: 09 February 2013 / Published: 1 March 2013 Copyright © 2013 Javad Torkamani et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Abstract The market margin presents the difference between the price offered by supplier and consumer and is very important in supplying agricultural products especially when the effect of supplier offered price increase (reduction) isn’t symmetric on the price offered by the consumer. The main purpose of this research was to study the procedure of price transfer (symmetric or asymmetric) in saffron market of Fars province. The research data have obtained from monthly prices of saffron retail and whole sale during 2005-2010 by the agricultural Jihad organization. The price transfer test and Hook and asymmetric error modification models were used for determining saffron transfer price from whole sale to retail. The tractions obtained from hook method show the effect of price increase and decrease in farms price separately. If the time series variable is convergent but not static (i.e. there is a balance and long term relation between the variables), then the Hook method can’t be applied and instead error correction model should be used.in this condition, the acceptance of null hypothesis shows the price transfer symmetry,  Correspondence should be addressed to Niloofar Pejman, Department of Agricultural Economics- Marvdasht Branch Universities, Shiraz, Iran, Email: n_pejman2006@yahoo.com.