Bidding for Cattle in the Texas Panhandle

摘要: Four beef-processing plants in the Texas Panhandle region procure cattle from feedlots a form of firstprice, sealed-bid auction. These auctions have features that distinguish them standard auctions. Using transactions-level data, we estimated packer bid functions and, via simulations, compared extant bidding environment to an alternative framework. The simulated on average produced higher seller revenue, more frequent sales plant valuing most highly, and switching by among competing packers. We attribute these results packers’ inconsistent available lots offer explanations for this behavior.