PRICE DISCOVERY IN THE EGG INDUSTRY

Formula pricing of eggs is typically based on quotations issued by Urner Barry Publications, and egg producers worry that the quotes are systematically lower than equilibrium levels. Egg Clearinghouse, Inc. (ECI) provides a public forum for cash trading, intended to facilitate price discovery. Evidence from 1994-95 does not suggest that Urner Barry understands producer level prices on average, Granger causality tests indicate a feedback relationship between the Urner Barry quotes and ECI prices, with ECI leading during price upswings. Lead times appear to have fallen since the late 1970s and early 1980s, confirming earlier predictions regarding market efficiency.


Issue Date:
1997-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31353
Published in:
Agricultural and Resource Economics Review, Volume 26, Number 1
Page range:
23-30
Total Pages:
8




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

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