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The Price of Disclosure in the Thoroughbred Yearling Market
Published online by Cambridge University Press: 26 January 2015
Extract
In this article, we examine disclosure as a tool to mitigate the effects of asymmetric information in a Thoroughbred yearling market. If disclosures influence market price, information contained therein must be valuable to buyers and hence diminish asymmetric information. Using public auction data, we find that disclosures do not influence price in a segment of the auction in which an implicit quality certification is available. However, in the other segment, we find evidence that some disclosures may provide valuable information to buyers.
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- Research Article
- Information
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- Copyright © Southern Agricultural Economics Association 2013
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