Risk, and Market Participant Behavior in the U.S. Slaughter Cattle Market
Document Type
Article
Journal/Book Title/Conference
Journal of Agricultural and Resource Economics
Volume
20
Issue
1
Publication Date
1995
First Page
22
Last Page
31
Abstract
Incomplete information generates uncertainty for market participants in the slaughter-cattle market. Buyer and seller behavior in the presence ofthat uncertainty is examined. Statisti- cally significant risk premiums are charged by packers when buying slaughter cattle on either a live- or dressed-weight basis compared to buying on a grade-and-yield basis. Pratt- Arrow risk-aversion coefficients are calculated for buyers and these remain constant over all marketing methods. Sellers market cattle under all three marketing methods, suggesting producers1 attitudes toward risk (risk-aversion coefficients) vary.
Recommended Citation
Feuz, D.M., S.W. Fausti and J.J. Wagner. 1995. "Risk, and Market Participant Behavior in the U.S. Slaughter Cattle Market." Journal of Agricultural and Resource Economics 20(1):22-31.
