This study examines the characteristics of price transmission along the vertical linkage in the beef industry before and after the implementation of the Mandatory Price Reporting Act (MPR) using econometric procedures such as the Gregory-Hansen structural break test, threshold autoregressive model, threshold error correction model, and nonlinear impulse response functions. Results show the improved speed of price adjustment after the MPR in the supply chain of the beef industry, whereas a limited evidence of the increased price asymmetry is detected. The increased asymmetry is observed mostly through the long-run regime switching coefficients of threshold autoregressive and error correction models. The price asymmetry mostly disappears in both pre-and post-MPR periods when only short-and long-run price adjustment coefficients are considered. The results also suggest the existence of the threshold cointegration in the vertical price relationship of the beef industry, which supports the use of the nonlinear threshold model in this study.[JEL codes: C22, Q11] INTRODUCTIONFarm, wholesale, and retail prices in the U.S. beef industry may not be discovered simultaneously; rather, there may be a lead-lag relationship among these prices. The lead-lag relationship could be caused by physical constraints in transporting livestock and slaughtered products, and retailers' and packers' exertion of market power in controlling prices.The vertical price relationship could also be influenced by the availability and access to the market information. As uncertainty about market supply and demand increases, individual transactions of market players tend to further deviate from actual current market clearing conditions. Typically, market information encompasses all information needed by buyers and sellers to arrive at their decision, and buyers and sellers need timely access to relevant information. Price is one such crucial market information.The collection and dissemination of price information could be affected by the recent structural changes in the U.S. beef industry. As the beef industry has been increasingly concentrated, there has been an apprehension 562
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