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The Role Of Transaction Costs In Market Selection: Market Selection In Commercial Feeder Cattle Operations

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Author Info
Bailey, Deevon
Hunnicutt, Lynn
Abstract

A survey of commercial feeder cattle operations in Utah revealed that explicit transaction costs such as transportation, shrink, and commissions can not fully explain how marketing alternatives are selected. Implicit transaction costs appear to play a critical role in the determination of market selection. For example, the level of trust between buyer and seller and the socio-economic characteristics of market participants are determinants of which marketing method will be used to sell feeder cattle.

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File URL: http://purl.umn.edu/19894
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2002 Annual meeting, July 28-31, Long Beach, CA with number 19894.

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Date of creation: 2002
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Handle: RePEc:ags:aaea02:19894

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Related research
Keywords: Livestock Production/Industries; Marketing;

References listed on IDEAS
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  1. Joskow, Paul L, 1988. "Asset Specificity and the Structure of Vertical Relationships: Empirical Evidence," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 95-117, Spring.
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This page was last updated on 2009-12-11.


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