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A Comparison Of Pricing Structures At Video And Traditional Cattle Auctions

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  • Bailey, DeeVon
  • Peterson, Monte C.

Abstract

The number of cattle sold through video auctions has increased dramatically during the past five years. In this study structural differences in pricing between a group of traditional auctions and the nation's largest satellite video cattle auction are examined. A Chow test for structural pricing differences reveals that the influence of lot characteristics, market information, and merchandising strategies on cattle prices are essentially identical at both types of auctions. However, optimal lot size is larger at video auctions than at traditional auctions.

Suggested Citation

  • Bailey, DeeVon & Peterson, Monte C., 1991. "A Comparison Of Pricing Structures At Video And Traditional Cattle Auctions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-12, December.
    • Handle: RePEc:ags:wjagec:32603
    DOI: 10.22004/ag.econ.32603
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    1. Schultz, Robert W. & Marsh, John M., 1985. "Steer And Heifer Price Differences In The Live Cattle And Carcass Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(1), pages 1-16, July.
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    1. Parcell, Joseph L. & Schroeder, Ted C. & Hiner, Frina D., 1995. "Determinants Of Cow-Calf Pair Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(2), pages 1-13, December.
    2. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2016. "Calf and Yearling Prices in the Western United States: Spatial, Quality, and Temporal Factors in Satellite Video Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-23.
    3. Chymis, Athanasios G. & James, Harvey S., Jr. & Konduru, Srinivasa & Pierce, Vern L., 2004. "Asymmetric Information In Cattle Auctions: The Problem Of Revaccinations," Working Papers 26039, University of Missouri Columbia, Department of Agricultural Economics.
    4. Lopez, Jose & Bankole, Taiwo & Wahrmund, Jackie, 2017. "A Hedonic Analysis of Feeder Cattle Auction Prices in Northeast Texas," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252732, Southern Agricultural Economics Association.
    5. Calil, Yuri Clements Daglia & Ribera, Luis A. & Anderson, David P. & Koury Filho, William, 2022. "Pure-bred Nellore Prices in Brazil: Morphological, Genetic, Physical, and Market Factors in Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    6. Yunhan Li & J. Scott Shonkwiler, 2021. "Assessing the Role of Ordering in Sequential English Auctions – Evidence from the Online Western Video Market Auction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 90-105, January.
    7. Pierce, Vern L. & Parcell, Joseph L. & Randle, Richard & Patterson, David J., 1999. "Determinants Of Sale Price And Farm Value In The Missouri Show-Me Select Replacement Heifer Program," 1999 Annual meeting, August 8-11, Nashville, TN 21545, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Dhuyvetter, Kevin C. & Schroeder, Ted C. & Simms, Danny D. & Bolze, Ronald P., Jr. & Geske, Jeremy, 1996. "Determinants Of Purebred Beef Bull Price Differentials," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-15, December.
    9. repec:ags:jrapmc:122317 is not listed on IDEAS
    10. Lanfranco, Bruno A. & Castano, Jose Pedro, 2010. "Incidence of Agro-Climate Variability over Grass-Fed Cattle Markets," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61182, Agricultural and Applied Economics Association.
    11. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2014. "Seller-Offered Forward Contracts: An Additional Benefit to Cattle Producers from Satellite Video Auctions," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162323, Southern Agricultural Economics Association.
    12. Zimmerman, Lance C. & Schroeder, Ted C. & Dhuyvetter, Kevin C. & Olson, K.C. & Stokka, Gerald L. & Seeger, Jon T. & Grotelueschen, Dale M., 2012. "The Effect of Value-Added Management on Calf Prices at Superior Livestock Auction Video Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-16, April.

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    Demand and Price Analysis;

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