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Abstract

This study investigates the underlying reasons for a producer's choice of marketing channels for stocker cattle in the United States. In addition to traditional public auctions, private sales, video auctions, and Internet auctions have been recently used in the marketing of stocker cattle. Findings show that while the number of marketing options may have increased in recent years, only relatively large producers can actually take advantage of these options. The marketing options for smaller producers are still limited due to their relative size. Also, the number of cattle marketed privately and through video and Internet auctions is found to be positively correlated with herd size. In addition, the New Institutional Economics (NIE) provides insights into how herd size influences the choice of marketing channels.

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