The Packer-Feeder Game: A Commodity Market Simulator

Stephen R. Koontz, Derrell S. Peel, James N. Trapp, Clement E. Ward


The Packer-Feeder Game simulates the market competition between eight cattle producing firms (feedlots) and four cattle purchasing/meat processing firms (packers). The four packing plants must collectively negotiate the purchase of approximately forty pens of cattle from the eight feedlots during each iteration of a series of six to eight minute playing periods. Forecasting future market conditions and timing the sale of inventories of cattle in the feedlots to match packing plant capacities and changing market conditions are the key challenges of the game. Direct cash sales between packers and feedlots as well as contracting for future delivery and use of endogenous commodity futures contracts are permitted.

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