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Asymmetric Value Of Preconditioning Programs For Feeder Cattle

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  • Avent, R. Keith
  • Ward, Clement E.
  • Lalman, David L.

Abstract

Preconditioning is not new but has received considerable attention in recent years. This research addresses two questions. Are buyers of preconditioned feeder calves paying a price premium close to the performance benefits expected from preconditioning? Is there information asymmetry in the value to the buyers compared with the premium they pay? Buyers paid a price premium but less than the expected performance gains. Thus, the hypothesis of asymmetry of information between buyers and sellers could not be confirmed.

Suggested Citation

  • Avent, R. Keith & Ward, Clement E. & Lalman, David L., 2002. "Asymmetric Value Of Preconditioning Programs For Feeder Cattle," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36559, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waealb:36559
    DOI: 10.22004/ag.econ.36559
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    References listed on IDEAS

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