FEEDER CATTLE PRICE SLIDES

A theoretical model is developed to explain the economics of determining price slides for feeder cattle. The contract is viewed as a dynamic game with continuous strategies where the buyer and seller are the players. The model provides a solution for the price slide that guarantees an unbiased estimate of cattle weight. An empirical model using Superior Livestock Auction (SLA) data shows price slides used are smaller than those needed to cause the producer to give unbiased estimates of weight. Consistent with the model's predictions, producers slightly underestimate cattle weights.


Issue Date:
2001-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31150
Published in:
Journal of Agricultural and Resource Economics, Volume 26, Number 1
Page range:
291-308
Total Pages:
18




 Record created 2017-04-01, last modified 2017-08-24

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