On information and market dynamics: The case of the US beef market

The paper investigates the nature of dynamic prices and expectations in a competitive market. The approach is applied to the U.S. beef marker, which exhibits cyclical patterns and significant biological lags in the production process. Beef price equations are estimated under different expectation regimes. The empirical results indicate the presence of heterogeneous price expectations, with a significant number of market participants neglecting information about the existence of a beef cycle. (C) ?000 Elsevier Science B.V. All rights reserved.