Abstract: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 100pounds 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 … Show more
“…The literature demonstrates that optimal bidding strategies depend on the extent of operational (cost, capacity utilization, location, and value placed on inputs of differing characteristics) and informational asymmetries between existing and potential rival firms (Rhodus et al, 1989;. Including the degree to which these asymmetries exist and are known by rival firms will help refine estimation of strategic behavior by industry firms and the resulting impact on the multitude of market participants.…”
Section: Operational and Informational Asymmetriesmentioning
confidence: 99%
“…In such a perfect market, competitive prices prevail. There exists a large number of buyers and sellers, none of whom individually influence price, a standardized product or one with well-defined and sufficiently narrow grades, free entry and exit, and information that is readily available and accessible to all participants (Rhodus et al, 1989). If one or more of these characteristics differs from this competitive ideal, there is the potential for noncompetitive behavior among industry rivals.…”
Section: Introductionmentioning
confidence: 99%
“…If one or more of these characteristics differs from this competitive ideal, there is the potential for noncompetitive behavior among industry rivals. This potential is due to market power with which selected market participants are able to exercise discretion over market prices (Rhodus et al, 1989).…”
“…The literature demonstrates that optimal bidding strategies depend on the extent of operational (cost, capacity utilization, location, and value placed on inputs of differing characteristics) and informational asymmetries between existing and potential rival firms (Rhodus et al, 1989;. Including the degree to which these asymmetries exist and are known by rival firms will help refine estimation of strategic behavior by industry firms and the resulting impact on the multitude of market participants.…”
Section: Operational and Informational Asymmetriesmentioning
confidence: 99%
“…In such a perfect market, competitive prices prevail. There exists a large number of buyers and sellers, none of whom individually influence price, a standardized product or one with well-defined and sufficiently narrow grades, free entry and exit, and information that is readily available and accessible to all participants (Rhodus et al, 1989). If one or more of these characteristics differs from this competitive ideal, there is the potential for noncompetitive behavior among industry rivals.…”
Section: Introductionmentioning
confidence: 99%
“…If one or more of these characteristics differs from this competitive ideal, there is the potential for noncompetitive behavior among industry rivals. This potential is due to market power with which selected market participants are able to exercise discretion over market prices (Rhodus et al, 1989).…”
“…Marketing System (HAMS) auxEtats-Unis confirme ces hypothhes (Rhodus, Baldwin et Henderson 1989). Evidence donc que l'encan reflete plus rapidement et complbtement les changements dans les variables exogbnes, et est alors plus efficace en terme d'information.…”
“…Subsequent price discovery studies (e.g., Hayenga, Gardner, Paul, & Houck, 1979;Lang & Rosa, 1980;Rhodus, Baldwin, & Henderson, 1989) in the 1980s focused on various micro-level commodity market issues. The 1990s was a decade of increased concentration in many sectors of agriculture, especially livestock (Hendrickson & Heffernan, 2002).…”
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