Economics Research Institute Study Paper
Utah State University Department of Economics
The size and shape of market areas for buyers from four major cattle feeding areas (Dodge City, Amarillo, Omaha, and Greeley) are determined by mapping data from the nation's largest video auction. Spatial statistics are also examined to determine their ability to identify market areas for feeder cattle. Mapping shows that procurement areas for feeder cattle buyers are large, irregularly shaped, and overlap substantially. Currently available spatial statistics were not found to be helpful in defining market areas so a new statistic (BTiJ was dev~loped to determine primary market areas. Feeder cattle buyers behave as oligopsonists in counties where most buyers are from one feeding area and prices are higher for feeder cattle in counties where two or more market areas overlap.
Bailey, DeeVon; Brorsen, B. Wade; and Thomsen, Michael R., "Identifying Buyer Market Areas and the Impact of Buyer Concentration in Feeder Cattle Markets Using Mapping and Spatial Statistics" (1994). Economic Research Institute Study Papers. Paper 44.