Arbitrage Costs Between Regional Fed-Cattle Markets

Stephen R. Koontz

No 285653, 1981-1999 Conference Archive from NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: Arbitrage cost models were used to measure the degree of integration between regional geographic AMS reported fed cattle markets. The method measures the implicit arbitrage costs and probability of arbitrage between two markets, and is also used to test the 5% rule from the Federal Trade Commission and Department of Justice Merger Guidelines. The results suggest that all U.S. fed cattle markets are well integrated. However, there are degrees of integration. East coast and west coast markets are distinct from markets in the central U.S. Further, arbitrage costs are lower from small volume markets to large markets, while costs are higher from large to small markets. Thus, for antitrust analysis, large market regions may be considered in isolation while small regions should include neighboring large regions in the economic market definition.

Keywords: Marketing (search for similar items in EconPapers)
Date: 1996-04
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/285653/files/confp23-96.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:nc8191:285653

DOI: 10.22004/ag.econ.285653

Access Statistics for this paper

More papers in 1981-1999 Conference Archive from NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management
Bibliographic data for series maintained by AgEcon Search ().