Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion

Scott W. Fausti; Bashir A. Qasmi; Jing Li; Matthew A. Diersen

Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion

Scott W. Fausti, Bashir A. Qasmi, Jing Li, Matthew A. Diersen

Research output: Contribution to journal › Article › peer-review

Abstract

 Mandatory livestock price reporting (MPR) was implemented in April 2001. Empirical evidence indicates a significant change in the weekly variability of publicly reported fed cattle grid premiums and discounts occurred after MPR implementation.
 
 We evaluate the effect of increased market transparency resulting from implementation of MPR on grid premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with either an increase or a decrease in dispersion. These results suggest that during the pre-MPR period, the weekly premium and discount data were drawn from a non-representative sample.

Original language	American English
Journal	Western Agricultural Economics Association Annual Meeting
State	Published - 2008
Externally published	Yes

Keywords

Fed Cattle
Grid Pricing
Market Transparency
Price Dispersion

Disciplines

Economics
Business

Cite this

@article{7efe767c711b484fb515f746404c3559,

title = "Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion",

abstract = " Mandatory livestock price reporting (MPR) was implemented in April 2001. Empirical evidence indicates a significant change in the weekly variability of publicly reported fed cattle grid premiums and discounts occurred after MPR implementation. We evaluate the effect of increased market transparency resulting from implementation of MPR on grid premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with either an increase or a decrease in dispersion. These results suggest that during the pre-MPR period, the weekly premium and discount data were drawn from a non-representative sample.",

keywords = "Fed Cattle, Grid Pricing, Market Transparency, Price Dispersion",

author = "Fausti, {Scott W.} and Qasmi, {Bashir A.} and Jing Li and Diersen, {Matthew A.}",

year = "2008",

language = "American English",

journal = "Western Agricultural Economics Association Annual Meeting",

}

TY - JOUR

T1 - Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion

AU - Fausti, Scott W.

AU - Qasmi, Bashir A.

AU - Li, Jing

AU - Diersen, Matthew A.

PY - 2008

Y1 - 2008

N2 - Mandatory livestock price reporting (MPR) was implemented in April 2001. Empirical evidence indicates a significant change in the weekly variability of publicly reported fed cattle grid premiums and discounts occurred after MPR implementation. We evaluate the effect of increased market transparency resulting from implementation of MPR on grid premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with either an increase or a decrease in dispersion. These results suggest that during the pre-MPR period, the weekly premium and discount data were drawn from a non-representative sample.

AB - Mandatory livestock price reporting (MPR) was implemented in April 2001. Empirical evidence indicates a significant change in the weekly variability of publicly reported fed cattle grid premiums and discounts occurred after MPR implementation. We evaluate the effect of increased market transparency resulting from implementation of MPR on grid premium and discount dispersion levels. Empirical results suggest that increased transparency is compatible with either an increase or a decrease in dispersion. These results suggest that during the pre-MPR period, the weekly premium and discount data were drawn from a non-representative sample.

KW - Fed Cattle

KW - Grid Pricing

KW - Market Transparency

KW - Price Dispersion

UR - http://ageconsearch.umn.edu/bitstream/37833/2/WAEA2008-AgEcSearch.pdf

M3 - Article

JO - Western Agricultural Economics Association Annual Meeting

JF - Western Agricultural Economics Association Annual Meeting

ER -

Mandatory Livestock Price Reporting, Market Transparency and Grid Price Dispersion

Abstract

Keywords

Disciplines

Other files and links

Cite this