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A New Taxonomy of Thin Markets

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  • Anderson, John D.
  • Hudson, Darren
  • Harri, Ardian
  • Turner, Steven C.

Abstract

The traditional conception of a thin market based on transactions volume remains relevant in many agricultural markets but does not adequately frame emerging thin market issues. As non-price means of pricing goods becomes more common, some cash commodity markets have become residual markets. In some of these markets, not only the volume of transactions but also the representativeness of transactions to those on the related contract market is an important issue. This paper develops a concept of thin markets that accounts for this dimension of market thinness and proposes a research agenda related to this topic.

Suggested Citation

  • Anderson, John D. & Hudson, Darren & Harri, Ardian & Turner, Steven C., 2007. "A New Taxonomy of Thin Markets," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34826, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeasm:34826
    DOI: 10.22004/ag.econ.34826
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    References listed on IDEAS

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    1. William G. Tomek, 1980. "Price Behavior on a Declining Terminal Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 434-444.
    2. Buschena, David E. & McNew, Kevin, 2005. "An Exploration of Market Pricing Efficiency: The Dairy Options Pilot Program," 2005 Annual meeting, July 24-27, Providence, RI 19271, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Peterson, Hikaru Hanawa, 2005. "Trading Behavior in a Marginal Organized Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(3), pages 1-20, December.
    4. Buschena, David E. & McNew, Kevin, 2005. "An Exploration of Market Pricing Efficiency: The Dairy Options Pilot Program," SCC-76 Meeting, 2005, March 31-April 2, Myrtle Beach, South Carolina 28726, SCC-76: Economics and Management of Risk in Agriculture and Natural Resources.
    5. Hudson, Darren & Anderson, John D. & Harri, Ardian & Turner, Steven C., 2007. "The Impacts of Market Structure and Contracts on Agricultural Markets," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34935, Southern Agricultural Economics Association.
    6. Ward, Clement E. & Koontz, Stephen R. & Schroeder, Ted C., 1998. "Impacts From Captive Supplies On Fed Cattle Transaction Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-21, December.
    7. John R. Schroeter & Azzeddine Azzam, 2004. "Captive supplies and cash market prices for fed cattle: The role of delivery timing incentives," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 347-362.
    8. Azzeddine Azzam, 1998. "Captive Supplies, Market Conduct, and the Open-Market Price," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 76-83.
    9. Anderson, John D. & Ward, Clement E. & Koontz, Stephen R. & Peel, Derrell S. & Trapp, James N., 1998. "Experimental Simulation Of Public Information Impacts On Price Discovery And Marketing Efficiency In The Fed Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-17, July.
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    Cited by:

    1. Franken, Jason R.V. & Parcell, Joseph L., 2012. "Evaluation of Market Thinness for Hogs and Pork," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-16, November.
    2. Chen, Bo & Saghaian, Sayed, 2016. "Market Integration and Price Transmission in theWorld Rice Export Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-14.
    3. 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.
    4. Fizaine, Florian, 2015. "Minor metals and organized markets: News highlights about the consequences of establishing a futures market in a thin market with a dual trading price system," Resources Policy, Elsevier, vol. 46(P2), pages 59-70.
    5. Daniel Kirste & Niclas Kannengie{ss}er & Ricky Lamberty & Ali Sunyaev, 2023. "How Automated Market Makers Approach the Thin Market Problem in Cryptoeconomic Systems," Papers 2309.12818, arXiv.org, revised Sep 2023.

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