Alternative Theories and Empirical Approaches to Price Discovery: An Application to Fed Cattle

Price discovery is a frequent topic of research, but many times is not clearly defined and thus purported to cover a myriad of topics. This article provides two alternative theories as the basis for one line of price discovery research. Empirical models consistent with the two theories are estimated...

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Bibliographic Details
Published in:Journal of agricultural and applied economics 2003-12, Vol.35 (3), p.649-661
Main Authors: Carlberg, Jared G., Ward, Clement E.
Format: Article
Language:English
Subjects:
Beef
C22
C51
Cattle
Consumers
Datasets
derived demand
Efficiency
Efficient markets
fed cattle
Futures market
Market prices
Packaging
partial adjustment model
price discovery
Price levels
Q11
Q12
Q13
Supply & demand
Citations: Items that this one cites
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Summary:Price discovery is a frequent topic of research, but many times is not clearly defined and thus purported to cover a myriad of topics. This article provides two alternative theories as the basis for one line of price discovery research. Empirical models consistent with the two theories are estimated using a common data set. Empirical results differ as expected. This article evidences why the theoretical basis for an empirical model depends on clearly defining the objective(s) of the research.
ISSN:1074-0708
2056-7405
1074-0708
DOI:10.1017/S1074070800028352