Article
The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions
Journal of Agricultural and Applied Economics
Document Type
Article
Disciplines
Publication Version
Published Version
Publication Date
1-1-2007
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.
Copyright Owner
Southern Agricultural Economics Association
Copyright Date
2007
Language
en
File Format
application/pdf
Citation Information
Harun Bulut and John Lawrence. "The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions" Journal of Agricultural and Applied Economics Vol. 39 Iss. 3 (2007) p. 625 - 640 Available at: http://works.bepress.com/john-lawrence/76/
This is an article from Journal of Agricultural and Applied Economics 39 (2007): 625, doi: 10.1017/S1074070800023312. Posted with permission.