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Strategic response to mandatory reporting legislation in the U.S. livestock and meat industries: Are collusive opportunities enhanced?

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  • Cheryl J. Wachenheim

    (Department of Agricultural Economics, North Dakota State University, P.O. Box 5636, Fargo, ND 58105-5636)

  • Eric A. DeVuyst

    (Department of Agricultural Economics, North Dakota State University, P.O. Box 5636, Fargo, ND 58105-5636)

Abstract

Recent federal legislation requires U.S. meat packers to report detailed information about livestock and meat transactions. The goal of this legislation is to improve competitiveness within the livestock sector and improve decision making within the marketing channel. We discuss the effect of industry structure and market transaction information on the competitive behavior of participant firms and why this legislation may actually reduce the price paid to livestock producers. [JEL Classification: L100, L110, L120] © 2001 John Wiley & Sons, Inc.

Suggested Citation

  • Cheryl J. Wachenheim & Eric A. DeVuyst, 2001. "Strategic response to mandatory reporting legislation in the U.S. livestock and meat industries: Are collusive opportunities enhanced?," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 177-195.
    • Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:177-195
    DOI: 10.1002/agr.1010
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    Cited by:

    1. Goldsmith, Peter D. & Salvador, Antonio & Knipe, Dar & Kendall, Elaine, 2002. "Structural Change Or Logical Incrementalism? Turbulence In The Global Meat System," 2002 Annual meeting, July 28-31, Long Beach, CA 19704, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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), pages 1-13, October.
    3. Fausti, Scott W. & Keimig, R. & Diersen, Matthew A. & Kim, Han & Santos, Joseph M., 2002. "Mandatory Versus Voluntary Price Reporting: An Empirical Investigation Of The Market Transparency Controversy," Economics Staff Papers 32024, South Dakota State University, Department of Economics.
    4. Kenneth Njoroge & Amalia Yiannaka & Konstantinos Giannakas & Azzeddine M. Azzam, 2007. "Market and Welfare Effects of the U.S. Livestock Mandatory Reporting Act," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 290-311, July.
    5. Dimitrios Panagiotou, 2019. "Market Power Effects of the Livestock Mandatory Reporting Act in the U.S. Meat Industry: a Stochastic Frontier Approach Under Uncertainty," Journal of Industry, Competition and Trade, Springer, vol. 19(1), pages 103-122, March.
    6. 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(3), pages 1-14, December.
    7. Rasch, Alexander & Herre, Jesko, 2013. "Customer-side transparency, elastic demand, and tacit collusion under differentiation," Information Economics and Policy, Elsevier, vol. 25(1), pages 51-59.
    8. Fausti, Scott W. & Qasmi, Bashir A. & Diersen, Matthew A., 2007. "Public Reporting of Fed Cattle Grid Prices: Policy Reform Consequences," Economics Staff Papers 7297, South Dakota State University, Department of Economics.
    9. Fausti, Scott W. & Diersen, Matthew A., 2005. "Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence from South Dakota," Economics Staff Papers 32027, South Dakota State University, Department of Economics.
    10. Fausti, Scott W. & Diersen, Matthew A., 2003. "Did The Voluntary Price Reporting System Fail To Provide Price Transparency In The Cash Market For Dressed Steers: Evidence From South Dakota," Economics Staff Papers 32012, South Dakota State University, Department of Economics.
    11. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economic Reports 34013, United States Department of Agriculture, Economic Research Service.
    12. Fausti, Scott W. & Diersen, Matthew A., 2003. "Did The Voluntary Price Reporting System Fail To Provide Price Transparency In The Cash Market For Dressed Steers: Evidence From South Dakota," Economics Staff Papers 32012, South Dakota State University, Department of Economics.
    13. Fausti, Scott W. & Qasmi, Bashir A. & Landblom, Douglas G. & Beutler, Martin & Johnson, Patricia S. & Gates, Roger N. & Patterson, Hubert H. & Salverson, Robin R., 2007. "Public Price Reporting, Marketing Channel Selection, and Price Discovery: The Perspective of Cow/Calf Producers in the Dakotas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(1), pages 1-18.
    14. Pozo, Veronica F. & Bejan, Vladimir & Tejeda, Hernan, 2016. "Disentangling Supply and Demand Shocks to Identify Changes in the Live Cattle’s Market Structure Post Livestock Mandatory Price Reporting Act," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236234, Agricultural and Applied Economics Association.
    15. Sarah Grunewald & Ted C. Schroeder & Clement E. Ward, 2004. "Cattle Feeder Perceptions of Livestock Mandatory Price Reporting," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 521-538.
    16. Chanjin Chung & Johnna Rushin & Prasanna Surathkal, 2018. "Impact of the livestock mandatory reporting act on the vertical price transmission within the beef supply chain," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 562-578, June.
    17. Joseph, Kishore & Garcia, Philip & Peterson, Paul E., 2016. "Does the Boxed Beef Price Inform the Live Cattle Futures Price?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236166, Agricultural and Applied Economics Association.
    18. Brester, Gary W. & Swanser, Kole & Crosby, Brett, 2020. "Adding Weight to a Thinning Live Cattle Market," MSU Staff Papers 305569, Montana State University > Department of Agricultural Economics and Economics.
    19. Fausti, Scott W. & Diersen, Matthew A. & Sun, He, 2003. "Discontinued Voluntary Price Reports For Live Cattle: Will They Be Missed By Producers?," Economics Staff Papers 32019, South Dakota State University, Department of Economics.
    20. Njoroge Kenneth, 2003. "Information Pooling and Collusion: Implications for The Livestock Mandatory Reporting Act," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, May.
    21. Martinez, Charles & Anderson, David & Park, John, 2017. "Producer Owned Cooperative Packing Plants and Mandatory Price Reporting: Unintended Consequences," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252798, Southern Agricultural Economics Association.
    22. Azzam, Azzeddine M. & Salvador, Santiago, 2004. "Information pooling and collusion: an empirical analysis," Information Economics and Policy, Elsevier, vol. 16(2), pages 275-286, June.
    23. Diersen, Matthew A., 2002. "Gleaning Information From Mandatory Livestock Price Reporting," Economics Staff Papers 32017, South Dakota State University, Department of Economics.
    24. Koontz Stephen R & Ward Clement E, 2011. "Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-33, July.
    25. Yuliya V. Bolotova, 2022. "Competition issues in the U.S. beef industry," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1340-1358, September.

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