Social and Behavioral Sciences Commons^™

Transportation And Quality Adjusted Basis: Does The Law Of One Price Hold For Feeder Cattle?, Chad Harris

All Graduate Theses and Dissertations, Spring 1920 to Summer 2023

Beef cattle and calves are raised in all areas of the United States. Since beef cattle are scattered throughout the US, there are many different types of cattle with numerous different quality characteristics which are valued differently. Many calves raised until weaning age across the US are then sent to cattle feeding areas primarily located in Texas, Kansas, Colorado, and Nebraska. The prices that are offered for beef calves vary considerably based on quality and location. The theory of the law of one price suggests that prices in areas that trade should not differ by more than the cost of …