Expected Utility, Risk, and Market Behavior: Theory and Evidence from the Fed Cattle Market

Scott Fausti, Zhiguang Wang and Brent Lange

No 147660, SCC-76 Meeting, 2013, March 14-16, Pensacola, Florida from SCC-76: Economics and Management of Risk in Agriculture and Natural Resources

Abstract: The effect of carcass quality uncertainty on the structure of the slaughter cattle market was studied. We demonstrated that varying levels of producer preference for risk and producer perception of carcass quality risk are plausible explanations for: the coexistence of multiple pricing methods for slaughter cattle; the grid market share differential between steer and heifer slaughter volume; and the variability in market share of slaughter volume across alternative marketing channel and pricing mechanisms for slaughter cattle.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 23
Date: 2013-03
New Economics Papers: this item is included in nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:scc013:147660

DOI: 10.22004/ag.econ.147660

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