Reputation Selling in Feeder Cattle Teleauctions

Abstract

Recent research to identify significant factors that influence feeder cattle prices has focused on cattle and market characteristics. The research reported here used data from Georgia teleauctions during the 1977 to 1988 period to determine the possible impact of seller's reputation on price. Both significant premium and discount sellers were identified for two of the three teleauction organizers. The teleauction organization that transferred the least amount of information about the cattle had the greatest number of reputation sellers while the organization with the most information about sellers' cattle given to buyers registered no significant seller reputations. Reputations can help buyers estimate quality in the absence of complete information.