Showing papers by "Jayson L. Lusk published in 2000"

Effects Of Meat Recalls On Futures Market Prices

Abstract: The number of meat recalls has increased markedly in recent years. Meat recalls have the potential to adversely affect short run demand for meat because of the associated decline in consumer confidence. This research examines the impact of beef and pork recalls on nearby daily live cattle and lean hog futures market prices, respectively. Results indicate that medium sized beef and large pork recalls that are a serious health concern have a marginally negative impact on short-term live cattle and lean hog futures prices, respectively. However, results are not robust across recall size and severity. This research suggests that if there is any systematic significant change in beef and pork demand due to meat recalls, it likely occurs over an extended period of time and only in certain cases does it noticeably affect daily futures prices.

Consumer valuation of beef ribeye steak attributes

Abstract: A choice experiment was used to investigate consumer demand for several beef ribeye steak attributes. Respondents indicated that they would prefer a "hormone free" ribeye steak priced up to $6.68/lb. more than a "non-hormone free" ribeye steak. Tenderness was also identified as an important attribute in the consumer purchasing decision as a one-unit increase in the tenderness of a steak (on a scale of one to 10) was associated with a $1.13/lb. premium.

Alternative calibration and auction institutions for predicting consumer willingness-to-pay for non-genetically modified corn chips

Abstract: This study explores two important issues in experimental economics: calibration and auction institution. Consumer willingness-to-pay bids for corn chips made with non-genetically modified ingredients are elicited from a 1st price and 2nd price auction. Results suggest that responses to scale differential questions, in a survey, accurately predict consumer willingness-to-pay bids. The 2 nd price auction induces a greater percentage of marginal bidders to offer a positive bid than a 1st price auction. However, average bid levels in the 1st and 2nd price auctions were not statistically different from one other. In a small and unrepresentative sample, 70 percent of student participants were unwilling to pay to exchange a bag of genetically modified corn chips for a bag of non-genetically modified corn chips. However, 20 percent of respondents were willing to pay at least $0.25/oz for the exchange.

Effects of meat recalls on futures market prices

Abstract: The number of meat recalls has increased markedly in recent years. Meat recalls have the potential to adversely affect short run demand for meat because of the associated decline in consumer confidence. This research examines the impact of beef and pork recalls on nearby daily live cattle and lean hog futures market prices, respectively. Results indicate that medium sized beef and large pork recalls that are a serious health concern have a marginally negative impact on short-term live cattle and lean hog futures prices, respectively. However, results are not robust across recall size and severity. This research suggests that if there is any systematic significant change in beef and pork demand due to meat recalls, it likely occurs over an extended period of time and only in certain cases does it noticeably affect daily futures prices.

Wholesale demand for usda quality graded boxed beef and effects of seasonality

Abstract: This study quantifies the differential in demand between different USDA quality grades of beef and the interaction between quality graded beef and other meats. We provide estimates of meat retailer own and cross price demand elasticities for USDA Choice and Select boxed beef. Results indicate that meat retailers have more elastic demand for lower quality graded beef. Seasonal analysis indicates demand for both beef quality grades becomes highly price inelastic during the summer "cook-out" months. The two beef quality grades are strong substitutes during the fall and winter. However, Select beef is not a substitute for Choice beef in the spring and summer.