Price Asymmetry in Spatial Fed Cattle Markets
Western Journal of Agricultural Economics
An issue examined in recent research is whether short-run cash price adjustments are asymmetric in the sense that responses to price increases are different than responses to price decreases. This research has centered on whether price adjustments between levels of a marketing channel are asymmetric (Kinnucan and Forker; Boyd and Brorsen; R. Ward). No research has examined the case of spatial cash price adjustments. Spatial price adjustments in cattle markets might be asymmetric for several reasons including asymmetric adjustment costs, asymmetric information, market concentration, and asymmetric price reporting. Our purpose was to determine whether shortrun cash price adjustments of spatial fed cattle markets are asymmetric. Like past research on this issue, we tested for the existence of asymmetry. We did not directly test hypotheses about the reasons for any observed asymmetry.
Bailey, DeeVon, and B. Wade Brorsen. Price Asymmetry in Spatial Fed Cattle Markets. Western Journal of Agricultural Economics 14(1989):246-52.