Transaction Costs and Cattle Marketing: The Information Content of Seller‐Provided Presale Data at Bull Auctions

16 Pages Posted: 24 Mar 2020

See all articles by Jan Chvosta

Jan Chvosta

affiliation not provided to SSRN

Randal R. Rucker

Montana State University - Bozeman - Department of Agricultural Economics and Economics

Myles J. Watts

Montana State University

Date Written: May 2001

Abstract

At sales out breeding bulls, prospective buyers have strong incentives to undertake presale measurement activities. To reduce these transaction costs, sellers often provide information on sale bulls. We examine the information content of two measures of the expected performance of the bulls and find that within a given herd, older, simpler measures of performance contain more information about prices (from buyers' perspectives) than newer, more sophisticated measures known as expected progeny differences, or EPDs. We also find, however, that buyers appear to pay considerable attention to annual changes in herd‐average EPD values when comparing animals from different sellers.

Keywords: breeding bulls, expected progeny differences, transaction costs, D440, M310, Q130

Suggested Citation

Chvosta, Jan and Rucker, Randal R. and Watts, Myles J., Transaction Costs and Cattle Marketing: The Information Content of Seller‐Provided Presale Data at Bull Auctions (May 2001). American Journal of Agricultural Economics, Vol. 83, Issue 2, pp. 286-301, 2001, Available at SSRN: https://ssrn.com/abstract=3558554 or http://dx.doi.org/10.1111/0002-9092.00156

Jan Chvosta (Contact Author)

affiliation not provided to SSRN

No Address Available

Randal R. Rucker

Montana State University - Bozeman - Department of Agricultural Economics and Economics ( email )

Bozeman, MT 59717-2920
United States
406-994-5644 (Phone)
406-994-4838 (Fax)

Myles J. Watts

Montana State University ( email )

306 Linfield Hall
P.O. Box 172920
Bozeman, MT 59717-2920
United States
406-587-9591 (Phone)
406-586-7555 (Fax)

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