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The effect of buyers and sellers on fish market prices

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  • Laurent Gobillon
  • François-Charles Wolff
  • Patrice Guillotreau

Abstract

This paper extends the traditional hedonic price specification to take into account the unobserved heterogeneity of sellers, buyers and seller–buyer matches. The specification is estimated using econometric techniques for non-nested panel data models on a data set of nearly 15 million transactions occurring in French wholesale fish markets over the 2002–2007 period. Results show that unobserved heterogeneity plays a significant role in price setting. For some species, its inclusion in price regressions changes the coefficients of quality-related fish characteristics. Fish characteristics are the main factors explaining price variations for many species, but time and buyer effects also play a significant role.

Suggested Citation

  • Laurent Gobillon & François-Charles Wolff & Patrice Guillotreau, 2017. "The effect of buyers and sellers on fish market prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 149-176.
    • Handle: RePEc:oup:erevae:v:44:y:2017:i:1:p:149-176.
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    Cited by:

    1. François-Charles Wolff & Frédéric Salladarré, 2022. "A first-sale price index of seafood products," Post-Print hal-03913085, HAL.
    2. Gobillon, Laurent & Wolff, François-Charles, 2020. "The local effects of an innovation: Evidence from the French fish market," Ecological Economics, Elsevier, vol. 171(C).
    3. Anderson, James L. & Asche, Frank & Garlock, Taryn, 2018. "Globalization and commoditization: The transformation of the seafood market," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 2-8.
    4. Wolff, François-Charles & Asche, Frank, 2022. "Pricing heterogeneity and transaction mode: Evidence from the French fish market," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 67-79.
    5. Stefan Seifert & Silke Hüttel, 2023. "Is there a risk of a winner’s curse in farmland auctions?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 1140-1177.
    6. Damian Boniface Sambuo & Stephen Kirama & Kitala Malamsha, 2021. "Fish Price Determination Around Lake Victoria, Tanzania: Analysis of Factors Affecting Fish Landing Price," Global Business Review, International Management Institute, vol. 22(2), pages 348-363, April.
    7. Sogn-Grundvåg, Geir & Zhang, Dengjun, 2023. "Commodities failing in auctions: The story of unsold cod in Norway," Journal of Commodity Markets, Elsevier, vol. 29(C).
    8. Marceliano Rodriguez & Domingo Calvo-Dopico & Estefanía Mourelle, 2021. "Impact of stock health on fish prices: Evaluation and implications for food accessibility," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-16, December.
    9. Asche, Frank & Bronnmann, Julia & Cojocaru, Andreea L., 2021. "The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish," Ecological Economics, Elsevier, vol. 188(C).
    10. Asche, Frank & Cojocaru, Andreea L. & Gaasland, Ivar & Straume, Hans-Martin, 2018. "Cod stories: Trade dynamics and duration for Norwegian cod exports," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 71-79.
    11. Damian Sambuo & Stephen Kirama & Kitala Malamsha, 2020. "Analysis of Fish Landing Price on Subjective Wellbeing of Fishers Around Lake Victoria, Tanzania," Journal of Happiness Studies, Springer, vol. 21(5), pages 1823-1839, June.

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    More about this item

    Keywords

    fish; commodity price; unobserved heterogeneity; variance analysis; panel data;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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