Pricing accuracy and efficiency in a pilot electronic hog market

Daily average prices for hogs sold through the Hog Accelerated Marketing System (HAMS), an experimental electronic market, were compared to those for similar grade hogs sold through Peoria terminal and Indiana direct markets. Results indicate that prices received by farmers using HAMS increased by $...

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Bibliographic Details
Published in:American journal of agricultural economics 1989-11, Vol.71 (4), p.874-882
Main Authors: Rhodus, W.T. (Ohio State University), Baldwin, E.D, Henderson, D.R
Format: Article
Language:English
Subjects:
Agricultural market
APLICACIONES DEL ORDENADOR
APPLICATION INFORMATIQUE
Average prices
CERDO
Efficiency metrics
Efficient markets
electronic marketing
Hams
Hogs
ILLINOIS
INDIANA
MARGE DE DISTRIBUTION
MARGEN DE DISTRIBUCION
Market conditions
Market prices
Marketing
MODELE
MODELOS
OHIO
PORCIN
PRECIOS
Price changes
Price efficiency
Price models
Pricing
pricing behavior
pricing efficiency
PRIX
PROCESAMIENTO DE LA INFORMACION
SUBASTAS
TRAITEMENT DE L'INFORMATION
VENTE AUX ENCHERES
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Summary:Daily average prices for hogs sold through the Hog Accelerated Marketing System (HAMS), an experimental electronic market, were compared to those for similar grade hogs sold through Peoria terminal and Indiana direct markets. Results indicate that prices received by farmers using HAMS increased by $0.94 to $0.99 per 100 pounds relative to their previous alternative. Using frequency of price change and average amount of price change as measures of efficient pricing behavior, the electronic market exhibited more efficient behavior than the traditional markets, i.e., average prices changed from one day to the next more frequently and by smaller amounts.
ISSN:0002-9092
1467-8276
DOI:10.2307/1242665