Alternative Theories and Empirical Approaches to Price Discovery: An Application to Fed Cattle

Price discovery is a frequent topic of research, but many times is not clearly defined and thus purported to cover a myriad of topics. This article provides two alternative theories as the basis for one line of price discovery research. Empirical models consistent with the two theories are estimated using a common data set. Empirical results differ as expected. This article evidences why the theoretical basis for an empirical model depends on clearly defining the objective(s) of the research.


Issue Date:
2003-12
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/43201
PURL Identifier:
http://purl.umn.edu/43201
Published in:
Journal of Agricultural and Applied Economics, 35, 3
Page range:
649-661
Total Pages:
13
JEL Codes:
Q13; Q11; Q12; C51; C22




 Record created 2017-04-01, last modified 2020-10-28

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