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Contract Pricing and Packer Competition in Fed Cattle Market AgEcon
Park, Moon-Soo; Love, H. Alan; Jin, Yanhong H..
We use a game-theoretical framework to analyze the coexistence of spot and contract markets in the cattle industry. A duopsony scenario with two packers and N feeders is used to reflect the reality in the cattle industry. Our main contribution is to incorporate the risk components and the pricing of hedonic attributes of cattle quality. Our preliminary results show that packers have an incentive to transform bidding strategies in spot markets when a series of hedonic characteristics play some significant roles in establishing cattle prices in contract market. That is, we will show that the effectiveness of contract with TOMP clauses on packer competition in a spot market depends on whether there is a correlation between spot price and hedonic...
Tipo: Conference Paper or Presentation Palavras-chave: Marketing.
Ano: 2006 URL: http://purl.umn.edu/21356
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The Impacts of Animal Disease Crises on the Korean Meat Market AgEcon
Park, Moon-Soo; Jin, Yanhong H.; Bessler, David A..
Employing the error correction method and historical decomposition with direct acyclic graphs, we quantify the impacts of domestic and oversea animal disease crises on the Korean meat markets. We find that (a) the market partially recovered 16 months after the foot-and-mouth outbreak in 2000, and 13 months after the avian influenza and the U.S. BSE incidents in 2003; (b) animal disease outbreaks have differentiate impacts by disease type and supply chain level. Retailers likely to have windfall profits as the retail price margin increased relative to the farm and wholesale levels; and (c) disease outbreaks affect dynamic price interdependence.
Tipo: Conference Paper or Presentation Palavras-chave: Animal disease outbreak; Error correction model; Direct acyclic graphs; Korean meat market; Historical Decomposition; Price margins; Livestock Production/Industries; C32; Q11; L11.
Ano: 2008 URL: http://purl.umn.edu/6365
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