Editing Pork cycle (section)

===An alternative model===
Kaldor's model involves an assumption that investors make systematic mistakes. In his model, investing (i.e. breeding cattle rather than slaughtering them) when prices are high causes future prices to fall - foreseeing this (i.e. slaughtering more when prices are high) can yield higher profits for the investors. [[Sherwin Rosen]], [[Kevin M. Murphy]], and [[José Scheinkman]] (1994) proposed an alternative model in which cattle ranchers have perfectly [[rational expectations]] about future prices.<ref name="Rosen1994" /> They showed that even in this case, the three-year lifetime of beef cattle would cause rational ranchers to choose breeding versus slaughtering in a way that would cause cattle populations to fluctuate over time.