The Influence of Market Power and Market Trends on Grid Market Signals
Scott Fausti (),
Matthew Diersen (),
Bashir Qasmi and
Journal of Agricultural and Resource Economics, 2015, vol. 40, issue 1, 12
This article investigates the premium and discount incentive mechanisms in the fed cattle grid pricing system. A pooled cross-sectional dataset containing carcass information on 598 fed steers evaluated weekly on the AMS publically reported price grid was constructed for the years 2001 to 2008 (226,000 observations). Empirical evidence suggests that premiums and discounts associated with specific carcass-quality attributes have been adjusting over time and that the market value of carcass quality declined by $0.50/cwt during periods of packer cooperative behavior in the fed cattle market. Additionally, the average market value of carcasses meeting industry quality standards exhibited a positive time trend.
Keywords: Marketing; Public Economics (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://ageconsearch.umn.edu/record/197379/files/JA ... Fausti_pp112-123.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:197379
Access Statistics for this article
More articles in Journal of Agricultural and Resource Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().