market efficiency, slaughter cattle, production signals, marketing method, price discrimination
Four alternative marketing methods for slaughter cattle were analyzed and empirically examined for pricing efficiency. Profits per head were found to be significantly different under the various marketing methods. Greater price discrimination occurred as carcass information increased. Increased price discrimination led to greater dispersion of profit from one marketing method to another. Different marketing methods appeared to send different production signals to producers. The desires of the consumer for less fat and a high quality product did not appear to be reaching the producers in the form of profit incentives under the most widely used marketing method.
Department of Economics, South Dakota State University
Number of Pages
Feuz, Dillon; Wagner, John; and Fausti, Scott, "An Empirical Analysis of the Efficiency of Four Alternative Marketing Methods for Slaughter Cattle" (1992). Economics Staff Paper Series. 90.