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Auction Markets for Specialty Food Products with Geographical Indications

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  • Schamel, Guenter

Abstract

We present a first analysis of auction markets for specialty food products. We identify auction prices, trade volume and value for domestic and foreign origin specialty ham with geographical indications (GIs) which were actually sold in online auctions in Germany within a one-month period. Applying hedonic modeling, we examine potential factors that may influence online bidding behavior and final auction prices. We estimate positive auction price effects for weight, bidding activity, and auction length, that the domestic product is sold at a discount, that higher shipping cost have a negative impact on final prices, and that auctions ending on Fridays and Saturdays yield lower prices. The model may be used to estimate the value of GIs. In our example, we estimate relative price differences of 20-30% for the GIs of three specialty hams (Prosciutto di Parma, Jamon Serrano, Schwarzwalder).

Suggested Citation

  • Schamel, Guenter, 2006. "Auction Markets for Specialty Food Products with Geographical Indications," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25606, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25606
    DOI: 10.22004/ag.econ.25606
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    References listed on IDEAS

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    1. Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-286, July.
    2. Patrick Bajari & Ali Hortaçsu, 2004. "Economic Insights from Internet Auctions," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 457-486, June.
    3. Alvin E. Roth & Axel Ockenfels, 2002. "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," American Economic Review, American Economic Association, vol. 92(4), pages 1093-1103, September.
    4. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    5. Klemperer, Paul, 1999. " Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-86, July.
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    Cited by:

    1. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee," 105th Seminar, March 8-10, 2007, Bologna, Italy 7866, European Association of Agricultural Economists.
    2. Oana, Deselnicu & Costanigro, Marco & Souza Monteiro, Diogo M. & Thilmany, Dawn D., 2011. "What Determines the Success of a Geographical Indication? A Price-based Meta-Analysis for GIs In Food Products," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 104000, Agricultural and Applied Economics Association.

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