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In the standard model of food pricing, retailers set price equal to the farm or wholesale price plus a markup based on retailing costs. However, predictions from a markup-pricing modelÑsuch as high correlations between retail price and farm price and among prices across retailers in a cityÑ are not supported empirically. We document three common alternatives to markup pricing: fixed (constant) pricing, periodic sales, and high-low pricing. These results inform the development of a structural model of the vertical market chain in order to study the relationship among retailers and producers in a prototypical fresh produce market. A series of simulations under different pricing regimes are conducted to evaluate these pricing strategiesÕ affects on farm price, farm income, and the variability of farm income. Results show that the alternative pricing strategies to markup pricing exacerbate farm price and income volatility compared to markup pricing. This enhanced farm-price volatility is also generally detrimental to farm income.