Impact of Mandatory Price Reporting Requirements on Level, Variability, and Elasticity Parameter Estimations for Retail Beef Prices

Lensing, Christine; Purcell, Wayne D.

doi:10.1111/j.1467-9353.2006.00283.x

Cited by 13 publications

(10 citation statements)

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“…There is evidence mandatory price reporting that includes retail meat scanner data can improve retail meat price reporting (e.g., Lensing and Purcell 2006). The importance of this result appears to need emphasis.…”

Section: Policy and Research Implications And Concluding Remarksmentioning

confidence: 89%

“…Lensing and Purcell (2006) compared the well-known retail meat prices reported by the Bureau of Labor Statistics (BLS) with scanner-based prices, which included price featuring by retailers, that resulted from the mandatory price reporting mandate. Lensing and Purcell found that quantity-weighted, monthly average retail prices for five of six beef items were lower than BLS prices.…”

Section: Evaluative Research Since Mandatory Price Reportingmentioning

confidence: 99%

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Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research

Koontz

Ward

2011

Journal of Agricultural &Amp; Food Industrial Organization

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Congress passed into law the Livestock Mandatory Reporting Act in 1999 and a mandatory pricing reporting system for livestock and meat began in 2001. The implementation was problematic. It is also difficult to find any research prior to the legislation that demonstrated inadequacies in the voluntary price reporting system that had been in existence since the Agricultural Marketing Act of 1946. Thus, there is little evidence upon which to evaluate the new system. Available research suggests mandatory price reporting increased transparency and information at the national level and across cash and non-cash market choices, reduced price information in regional markets, and increased spatial and vertical market integration. Research shows diverse opinions on the success of the new system. Research also shows the potential for retail meat scanner data to significantly improve the accuracy of reported retail meat prices. Related research suggests clear benefits of the new system will be hard to measure. A primary conclusion from the literature is that benefits were unforeseen and unintended consequences were large. And that continued cost/benefit oriented research of the policy and legislation would be useful.

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Section: Policy and Research Implications And Concluding Remarksmentioning

confidence: 89%

Section: Evaluative Research Since Mandatory Price Reportingmentioning

confidence: 99%

Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research

Koontz

Ward

2011

Journal of Agricultural &Amp; Food Industrial Organization

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“…Research by Lensing and Purcell (2006) shows that historic retail prices as collected by BLS are in fact too high. Our efforts show, as producer groups often assert, that the BLS prices do not always respond to price declines at the wholesale level.…”

Section: Discussionmentioning

confidence: 99%

Retailers' response to wholesale price changes: new evidence from scanner‐based quantity‐weighted beef prices

2008

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Retailers are often criticized for a slow response in retail prices to changes in wholesale beef prices. The unresponsiveness, especially when wholesale and farm prices are declining, is seen as a lack of competitiveness and as a reason for congressional action to regulate behavior of processors or retailers. The validity of the historical analyses of retailer price responsiveness is questionable, however. Traditional Bureau of Labor Statistics (BLS) retail beef prices biased upward and do not account for large volumes sold at discounted prices. This article uses newly available scanner-based quantity-weighted retail prices to suggest that retailers' response to changes in wholesale beef prices is significantly larger and possibly quicker than is shown by traditional BLS measures of retail prices. Recent efforts to prompt legislation to regulate how firms behave along the beef supply chain, which are based only on arguments that retailers are not responding to price changes at the wholesale level, may be inappropriate. [L110, L660, D400] r

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“…Scanner data allow significant advances in understanding food product marketing because they enable estimation of firm‐, brand‐, and commodity‐level demand models (Cotterill, 1994; Capps and Love, 2002). Lensing and Purcell (2006) find that the prices collected by the Bureau of Labor Statistics (BLS) have been higher than the prices that consumers use to make their buying decisions. Volume weighted prices, provided by scanner data, more accurately reflect what consumers actually pay for fresh meat in contrast to BLS summaries of posted prices (Lensing and Purcell, 2006).…”

Section: Datamentioning

confidence: 98%

Studying composite demand using scanner data: the case of ground beef in the US

Schulz¹,

Schroeder²,

Xia³

2012

Agricultural Economics

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This article reports tests of aggregation over elementary ground beef products and estimates composite demand elasticities. Results suggest that we obtain reliable information on consumers' actual ground beef purchases by grouping data according to either lean percentage or brand type. The results also suggest that we obtain reliable information by using the data to form a single ground beef composite. By testing for valid aggregates and providing estimates of composite demand elasticities the analysis provides economists and policymakers with information regarding the effects of food and agricultural policies on consumers and producers that buy and produce ground beef.JEL classifications: Q13, Q18, R32

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Impact of Mandatory Price Reporting Requirements on Level, Variability, and Elasticity Parameter Estimations for Retail Beef Prices

Cited by 13 publications

References 1 publication

Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research

Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research

Retailers' response to wholesale price changes: new evidence from scanner‐based quantity‐weighted beef prices

Studying composite demand using scanner data: the case of ground beef in the US

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