PRICE ARBITRAGE BETWEEN QUEENSLAND CATTLE AUCTIONS

Christine H. Williams and Ronald A. Bewley

Australian Journal of Agricultural Economics, 1993, vol. 37, issue 1, 23

Abstract: In a competitive market with free information flows, spatial arbitrage will ensure that average prices at geographically separate markets will move in unison. The speed of adjustment is related to information flows between markets; if adjustment lags exist, there may be opportunities for arbitragers to gain. The transmission of price information is modelled using Johansen's procedure and the existence of long-run arbitrage opportunities is investigated. An innovation analysis is used to examine the varying responses to changes in prices at spatially separate markets.

Keywords: Marketing (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22381

DOI: 10.22004/ag.econ.22381

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