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Supplier reputation and price premium: the case of groundnuts in Rotterdam


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  • Revoredo-Giha, Cesar
  • Fletcher, Stanley M.


Firm’s reputation depends on the quality of its goods and its reliability as a supplier. This may explain observed price differences between commodities from different origins but with the same observable characteristics. We analyse data for the Rotterdam market and use hedonic price analysis to show the existence of a price premium that favours the US over other origins. As secondary information points out exporter reliability as one explanation we formalise the relationship between reliability and price premiums in a theoretical model and analyse its implications.

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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 06 (2005)
Issue (Month): 2 (August)

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Handle: RePEc:ags:aergaa:44095

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Keywords: firm reputation; supplier reliability; price differences; groundnuts trade; hedonic analysis; country of origin; Demand and Price Analysis; Crop Production/Industries;


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  1. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
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Cited by:
  1. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Nadolnyak, Denis A. & Fletcher, Stanley M., 2006. "Quality Premiums and the Post-Harvest Spot Market Thinness: The Case of U.S. Peanuts," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25274, International Association of Agricultural Economists.
  3. Nadolnyak, Denis A. & Fletcher, Stanley M. & Revoredo-Giha, Cesar, 2005. "Can Rank-Order Tournaments Improve Efficiency of Quality Differentiated Crop Markets Under Marketing Loan Program Operation? The Case of U.S. Peanuts," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24703, European Association of Agricultural Economists.


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