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Experimental Examination Of A Thin Market: Price Behavior In A Declining Terminal Market Revisited

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  • Nelson, Robert G.
  • Turner, Steven C.

Abstract

Perceived characteristics of thin markets are described and approaches to furthering their study are suggested. Design features of a laboratory thin market, patterned after a typical livestock marketing situation, are described. Price bias and variation from a "thick" private negotiation market with 22 traders is compared to that from a "thin" auction market with 8 traders. No systematic price bias was found in any of the markets. Price variation was actually lower in the thin auction market.

Suggested Citation

  • Nelson, Robert G. & Turner, Steven C., 1995. "Experimental Examination Of A Thin Market: Price Behavior In A Declining Terminal Market Revisited," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), pages 1-12, July.
    • Handle: RePEc:ags:joaaec:15328
    DOI: 10.22004/ag.econ.15328
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    1. Fatin Afiqah Md. Azmi, 2022. "Patterns in Number of Property Transactions of Pre-War Shophouse Case Study: Penang, Malacca and Kelantan ," GATR Journals gjbssr614, Global Academy of Training and Research (GATR) Enterprise.
    2. Schroeder, Ted C. & Ward, Clement E. & Mintert, James & Peel, Derrell S., 1998. "Beef Industry Price Discovery: A Look Ahead," Staff Papers 232524, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    3. Schroeder, Ted C. & Ward, Clement E., 2000. "Price Discovery Issues And Trends In Cattle And Hog Markets," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36418, Western Agricultural Economics Association.
    4. Ahmadi-Esfahani, Fredoun Z. & Locke, Christopher G., 1998. "Wholesale food markets with 'Chinese characteristics'," Food Policy, Elsevier, vol. 23(1), pages 89-103, February.
    5. Holland, Steven Jerry, 2004. "Investment in a Thin and Uncertain Market: A Dynamic Study of the Formation and Stability of New Generation Cooperatives," Faculty and Alumni Dissertations 307221, University of Minnesota, Department of Applied Economics.
    6. Skully, David W., 1998. "Opposition To Contract Production: Self-Selection, Status, And Stranded Assets," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21012, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Chris Boessen & Joe Parcell & Jason Franken & John Lawrence & Ron Plain & Glenn Grimes, 2010. "Producer perceptions and attitudes toward hog marketing contracts," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 405-424.
    8. Franken, Jason R.V. & Parcell, Joe L., 2012. "Evaluation of Market Thinness for Hogs and Pork," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 461-475, November.

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