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Determinants of Weanling Thoroughbred Auction Prices

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  • Hansen, Charlotte R.
  • Stowe, C. Jill

Abstract

Determinants of prices of 1,302 weanling Thoroughbreds sold at the 2010 November Breeding Stock Sale at the Keeneland Association, Inc. are investigated. Weanlings, who are less than one-year-old, are of unknown breeding and racing quality; still, prices at auctions display high variability. A hedonic price analysis is utilized to identify the determinants of weanling sales prices, and the corresponding marginal values of those determinants are estimated. Prices were highly responsive to variables related to pedigree quality, including the sire’s stud fee, whether the sire was relatively new in his breeding career or not, and whether the dam or the dam’s progeny had earned black type. In addition, prices were influenced by individual characteristics such as gender, age, state of birth. The weanling’s placement in the sale and pinhooked weanlings also influenced price. Results can be used as a decision tool by both buyers and sellers.

Suggested Citation

  • Hansen, Charlotte R. & Stowe, C. Jill, 2017. "Determinants of Weanling Thoroughbred Auction Prices," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252780, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252780
    DOI: 10.22004/ag.econ.252780
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    References listed on IDEAS

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    1. Vickner, Steven S. & Koch, Stephen I., 2001. "Hedonic Pricing, Information, And The Market For Thoroughbred Yearlings," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 19(2), pages 1-17.
    2. Stowe, C. Jill & Ajello, Billy, 2010. "A Hedonic Price Analysis of Differentiated Products of Unknown Quality: Freshman Sire Stud Fees in the Thoroughbred Breeding Industry," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(1), pages 1-12.
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    5. Plant, Emily J. & Stowe, C. Jill, 2013. "The Price of Disclosure in the Thoroughbred Yearling Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(2), pages 1-15, May.
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    8. Poerwanto, Devie A. & Stowe, C. Jill, 2010. "The Relationship Between Sire Representation and Average Yearling Prices in the Thoroughbred Industry," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 28(1), pages 1-14.
    9. Conor Parsons & Ian Smith, 2008. "The Price of Thoroughbred Yearlings in Britain," Journal of Sports Economics, , vol. 9(1), pages 43-66, February.
    10. Neibergs, J. Shannon & Thalheimer, Richard, 1997. "Price Expectations And Supply Response In The Thoroughbred Yearling Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(2), pages 1-17, December.
    11. J. Shannon Neibergs, 2001. "A hedonic price analysis of thoroughbred broodmare characteristics," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 299-314.
    12. Marion Robert & C. Jill Stowe, 2016. "Ready to run: price determinants of thoroughbreds from 2 year olds in training sales," Applied Economics, Taylor & Francis Journals, vol. 48(48), pages 4690-4697, October.
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