IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/31170.html
   My bibliography  Save this article

Experimental Simulation Of Public Information Impacts On Price Discovery And Marketing Efficiency In The Fed Cattle Market

Author

Listed:
  • Anderson, John D.
  • Ward, Clement E.
  • Koontz, Stephen R.
  • Peel, Derrell S.
  • Trapp, James N.

Abstract

Federal budgetary pressures raise questions regarding the importance of public market information. This study assesses the impact of price discovery and production efficiency of reducing public price and quantity information. The amount and type of information provided to Fed Cattle Market Simulator (FCMS) participants was varied by periodically withholding current and weekly summary information according to a predetermined experimental design. Results show that reducing information increased price variance and decreased marketing efficiency; that is, more cattle were delivered at weights deviating from 1,150 pounds- the least-cost marketing weight in the simulator. These factors, which increase costs, make the industry less competitive.

Suggested Citation

  • Anderson, John D. & Ward, Clement E. & Koontz, Stephen R. & Peel, Derrell S. & Trapp, James N., 1998. "Experimental Simulation Of Public Information Impacts On Price Discovery And Marketing Efficiency In The Fed Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
  • Handle: RePEc:ags:jlaare:31170
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/31170
    Download Restriction: no

    References listed on IDEAS

    as
    1. repec:cdl:agrebk:666489 is not listed on IDEAS
    2. Nikolaos T. Milonas, 1987. "The effects of USDA crop announcements on commodity prices," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 7(5), pages 571-589, October.
    3. Rausser, Gordon C. & Perloff, Jeffrey M & Zusman, Pinhas, 1985. "The food marketing system: the relevance of economic efficiency measures," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7361f847, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Paul M. Patterson & B. Wade Brorsen, 1993. "USDA Export Sales Report: Is It News?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(2), pages 367-378.
    5. Jones, Rodney & Schroeder, Ted & Mintert, James & Brazle, Frank, 1992. "The Impacts of Quality on Cash Fed Cattle Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(02), pages 149-162, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anderson, John D. & Hudson, Darren & Harri, Ardian & Turner, Steven C., 2007. "A New Taxonomy of Thin Markets," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34826, Southern Agricultural Economics Association.
    2. Fausti, Scott & Diersen, Matthew, 2005. "Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence from South Dakota," Staff Papers 050001, South Dakota State University, Department of Economics.
    3. Ward, Clement E. & Koontz, Stephen R. & Peel, Derrell S. & Trapp, James N., 2001. "Lessons Learned From Research With The Fed Cattle Market Simulator," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36181, Western Agricultural Economics Association.
    4. Koontz, Stephen R., 2012. "Impacts of "Right of First Refusal" on Competitiveness of Fed Cattle Markets: Results from an Economic Experiment," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123875, Agricultural and Applied Economics Association.
    5. William W. Wilson & Bruce L. Dahl, 2004. "Transparency and Bidding Competition in International Wheat Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 89-105, March.
    6. Lyford, Conrad P. & Hicks, R. Todd & Ward, Clement E. & Trapp, James N. & Peel, Derrell S., 2001. "The Effect Of Contracting On Pricing Dynamics In The Fed Cattle Market: An Experimental Simulation Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20535, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Nicols, Panos & Ahmadi-Esfahani, Fredoun Z., 2009. "Are Australian wholesale vegetable markets LOOPy?," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47618, Australian Agricultural and Resource Economics Society.
    8. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A., 2007. "Public Price Reporting in the Cash Market for Live Cattle: A Spatial Market Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
    9. Carlberg, Jared G. & Ward, Clement E., 2001. "A Partial-Adjustment, Mixed Linear Model Of Price Discovery In An Experimental Market For Fed Cattle," 2001 Annual meeting, August 5-8, Chicago, IL 20598, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Fausti, S.W & Diersen, M., 2003. "Did the Voluntary Price Reporting System Fail to Provide Price Transparency in the Cash Market for Dressed Steers: Evidence from South Dakota," Staff Papers 030001, South Dakota State University, Department of Economics.
    11. Schroeder, Ted C. & Ward, Clement E., 2000. "Price Discovery Issues And Trends In Cattle And Hog Markets," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36418, Western Agricultural Economics Association.
    12. Clement E. Ward & Jong-In Lee, 2002. "Impacts from meatpacking firm mergers in an experimental market," Agribusiness, John Wiley & Sons, Ltd., vol. 18(2), pages 247-260.
    13. Fausti, Scott W. & Keimig, R. & Diersen, Matthew A. & Kim, Han & Santos, Joseph M., 2003. "Mandatory Versus Voluntary Price Reporting: An Empirical Investigation Of The Market Transparency Controversy," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35139, Southern Agricultural Economics Association.
    14. Jared G. Carlberg & Robert J. Hogan & Clement E. Ward, 2009. "Game theory application to Fed Cattle procurement in an experimental market," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 56-69.
    15. Fausti, Scott W. & Diersen, Matthew A., 2004. "The Voluntary Reporting System's Ability to Provide Price Transparency in the Cash Market for Dressed Steers: Evidence from South Dakota," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(03), December.
    16. Tione, Sarah Ephridah, 2011. "Analysis of Effectiveness of Modern Information and Communication Technologies on Maize Marketing Efficiency in Lilongwe and Dedza Districts and Selected Markets of Malawi," Research Theses 198525, Collaborative Masters Program in Agricultural and Applied Economics.

    More about this item

    Keywords

    Demand and Price Analysis; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:31170. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/waeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.