Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2007

Journal or Book Title

Journal of Agricultural and Applied Economics

Volume

39

Issue

3

First Page or Article ID Number

625

Last Page

640

DOI

10.1017/S1074070800023312

Abstract

After controlling a variety of feeder cattle characteristics and market and sale conditions in Iowa feeder auctions, the price premiums for preconditioning claims (vaccinations and minimum 30 days of weaning) with and without third-party certification (TPC) are estimated as $6.12/cwt and $3.35/cwt, respectively. These premiums differ statistically (p < 0.0001), and their difference exceeds the average participation cost of TPC ($l/cwt). This indicates that TPC is valued in the market to credibly signal preconditioning investment under asymmetric information.

JEL Classification

Q11, Q12, Q13, C23

Comments

This is an article from Journal of Agricultural and Applied Economics 39 (2007): 625, doi: 10.1017/S1074070800023312. Posted with permission.

Copyright Owner

Southern Agricultural Economics Association

Language

en

File Format

application/pdf

Share

COinS