RISK AND MARKET PARTICIPANT BEHAVIOR IN THE U.S. SLAUGHTER-CATTLE MARKET

Dillon M. Feuz, Scott Fausti and John J. Wagner

Journal of Agricultural and Resource Economics, 1995, vol. 20, issue 01, 10

Abstract: Incomplete information generates uncertainty for market participants in the slaughter-cattle market. Buyer and seller behavior in the presence of that uncertainty is examined. Statistically significant risk premiums are charged by packers when buying slaughter cattle on either a live- or dressed-weight basis compared to buying on a grade-and-yield basis. Pratt-Arrow risk-aversion coefficients are calculated for buyers and these remain constant over all marketing methods. Sellers market cattle under all three marketing methods, suggesting producers' attitudes toward risk (risk-aversion coefficients) vary.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Risk and Market Participant Behavior in the U.S. Slaughter Cattle Market (1994)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30935

DOI: 10.22004/ag.econ.30935

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