Looking vegetable industry from the vertical view，wholesale and retail are 2 important links. The
movement of vegetable wholesale and retail prices and their relationship are the focus of all circles concern. This
article takes the Beijing market as example，and the daily wholesale and retail prices of tomato and cucumber as
object，analyzed the transmission relationship between vegetable wholesale and retail prices using the method
of finite distributed lag model and error correction model. The study reveals that these 2 price trend are basically
the same，and the correlation coefficient between the wholesale price and retail price is very high. There is oneway
transmission of causal relationship between these 2 prices；the transmission between them is smooth，but
the transmission time effect of different kinds vegetables is different. The wholesale price takes a leading role in
vegetable price formation. When the vegetables price is under attack，if the retail impact is too high it will go dowm
to the wholesale price；if the wholesale price is too high，the retail price will also be higher.