Yearling A is a guaranteed economic loss. The example is hypothetical, but the financial rewards associated with being aware of and adhering to buyer preferences are real. After evaluating price factors in the initial study based on data from 1987 through 1989 inclusive, follow-up studies were done. When the time-frame of the study was doubled to include data through 1992, patterns and trends were revealed. Statistics and changes related to the price-factor variables are presented in Tables 2 and 3.
Value is a subjective term, particularly in the horse industry.
In this case, the answer is found at the bottom of Table 2. By comparing 1987 and 1988 average yearling prices with 1991 and 1992 averages, horse prices increased 16 percent at selected sales and 25 percent at open sales. As discussed in Price Factors, other discontinuous factors are important to price. The statistics in Table 3 also reveal a notable shift in breeding patterns on both the paternal and maternal sides of the yearling's pedigree. This fact is particularly true for yearlings for sale in the selected sales.