A Stochastic Financial Analysis of Cage and Cage-free Egg Production in the United States
Trejo-Pech, C., and J. M. Thompson.  2019.  Selected Paper Presentation. Agricultural and Applied Economics Association Annual Meeting..

Abstract:
This study compares profitability of conventional and cage-free eggs production in the United States. By using discounted cash flow valuation, we estimate rates of return for both production systems and a breakeven price, the potential output price that would equate profitability of conventional and cage-free production. We find that while both production systems provide a rate of return at least as high as an estimated opportunity cost, conventional production is more profitable. Furthermore, in order both production systems to yield the same rate of return, price of eggs under cage-free production at the farmer gate should roughly double prices under conventional production.