IDEAS home Printed from https://ideas.repec.org/a/ucp/mresec/doi10.1086-680445.html
   My bibliography  Save this article

Pricing on the Fish Market--Does Size Matter?

Author

Listed:
  • Eric Sjöberg

Abstract

The importance of fish size for price per kilo is studied using an inverse demand approach. Price per kilo in different size categories of the same species differs significantly. This means that the average price for a species may change due to e.g., high grading or a changing climate, which both have the potential to change the size composition of the catch. Estimates show that quantity flexibilities differ substantially across size and species, while scale flexibilities, in general, are close to homothetic. Holding total catch constant, an approximate 1% decrease in the largest size category and a corresponding increase in the smallest size category is estimated to reduce the value of an average week's catch by roughly 0.1-0.4%. The results imply that the effect of size on price is an important consideration when formulating regulations or policies to curb, for example, high grading.

Suggested Citation

  • Eric Sjöberg, 2015. "Pricing on the Fish Market--Does Size Matter?," Marine Resource Economics, University of Chicago Press, vol. 30(3), pages 277-296.
    • Handle: RePEc:ucp:mresec:doi:10.1086/680445
    DOI: 10.1086/680445
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/680445
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/680445
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/680445?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Cathy A. Roheim & Frank Asche & Julie Insignares Santos, 2011. "The Elusive Price Premium for Ecolabelled Products: Evidence from Seafood in the UK Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(3), pages 655-668, September.
    2. Laitinen, Kenneth & Theil, Henri, 1979. "The Antonelli matrix and the reciprocal Slutsky matrix," Economics Letters, Elsevier, vol. 3(2), pages 153-157.
    3. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    4. James P. Houck, 1965. "The Relationship of Direct Price Flexibilities to Direct Price Elasticities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 789-792.
    5. Panos Fousekis & Giannis Karagiannis, 2001. "Wholesale level demand for fish grades in Greece," Applied Economics Letters, Taylor & Francis Journals, vol. 8(7), pages 479-482.
    6. Kjell G. Salvanes & Frode Steen, 1994. "Testing for Relative Performance between Seasons in a Fishery," Land Economics, University of Wisconsin Press, vol. 70(4), pages 431-447.
    7. Michael T. Carroll & James L. Anderson & Josué Martínez-Garmendia, 2001. "Pricing U.S. North Atlantic bluefin tuna and implications for management," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 243-254.
    8. Holt, Matthew T & Goodwin, Barry K, 1997. "Generalized Habit Formation in an Inverse Almost Ideal Demand System: An Application to Meat Expenditures in the U.S," Empirical Economics, Springer, vol. 22(2), pages 293-320.
    9. Chiang, Fu-Sung & Lee, Jonq-Ying & Brown, Mark G., 2001. "The Impact Of Inventory On Tuna Price: An Application Of Scaling In The Rotterdam Inverse Demand System," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(3), pages 1-9, December.
    10. Dadi Kristofersson & Kyrre Rickertsen, 2004. "Efficient Estimation of Hedonic Inverse Input Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1127-1137.
    11. Joshua D. Angrist & Kathryn Graddy & Guido W. Imbens, 2000. "The Interpretation of Instrumental Variables Estimators in Simultaneous Equations Models with an Application to the Demand for Fish," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 499-527.
    12. Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-530.
    13. Hoanjae Park & Walter N. Thurman, 1999. "On Interpreting Inverse Demand Systems: A Primal Comparison of Scale Flexibilities and Income Elasticities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 950-958.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:uta:papers:2014_01 is not listed on IDEAS
    2. Chin-Hwa Jenny Sun & Fu-Sung Chiang & Patrice Guillotreau & Dale Squires, 2015. "Fewer Fish for Higher Profits? Price Response and Economic Incentives in Global Tuna Fisheries Management," Working Papers hal-01110771, HAL.
    3. Chin-Hwa Sun & Fu-Sung Chiang & Dale Squires & Anthony Rogers & Man-Ser Jan, 2019. "More landings for higher profit? Inverse demand analysis of the bluefin tuna auction price in Japan and economic incentives in global bluefin tuna fisheries management," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-27, August.
    4. Holt, Matthew T., 2002. "Inverse demand systems and choice of functional form," European Economic Review, Elsevier, vol. 46(1), pages 117-142, January.
    5. Fousekis, Panos & Revell, Brian J., 2002. "Primary Demand for Red Meats in the United Kingdom," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 63.
    6. Guillen, Jordi & Maynou, Francesc, 2014. "Importance of temporal and spatial factors in the ex-vessel price formation for red shrimp and management implications," Marine Policy, Elsevier, vol. 47(C), pages 66-70.
    7. Chris Moore & Charles Griffiths, 2018. "Welfare analysis in a two-stage inverse demand model: an application to harvest changes in the Chesapeake Bay," Empirical Economics, Springer, vol. 55(3), pages 1181-1206, November.
    8. Roheim, Cathy A. & Zhang, Dengjun, 2018. "Sustainability certification and product substitutability: Evidence from the seafood market," Food Policy, Elsevier, vol. 79(C), pages 92-100.
    9. Daniele Moro & Paolo Sckokai, 2002. "Functional separability within a quadratic inverse demand system," Applied Economics, Taylor & Francis Journals, vol. 34(3), pages 285-293.
    10. Toshinobu Matsuda, 2005. "Differential Demand Systems: A Further Look at Barten's Synthesis," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 607-619, January.
    11. Toshinobu Matsuda, 2007. "Linearizing the inverse quadratic almost ideal demand system," Applied Economics, Taylor & Francis Journals, vol. 39(3), pages 381-396.
    12. Hallstein, Eric & Villas-Boas, Sofia Berto, 2009. "Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood," CUDARE Working Papers 120535, University of California, Berkeley, Department of Agricultural and Resource Economics.
    13. Sean Pascoe & Peggy Schrobback & Eriko Hoshino & Robert Curtotti, 2023. "Impact of changes in imports and farmed salmon on wild-caught fish prices in Australia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(2), pages 335-359.
    14. Crawford, Gregory S. & Deer, Lachlan & Smith, Jeremy & Sturgeon, Paul, 2017. "The Regulation of Public Service Broadcasters : Should there be more advertising on television?," Economic Research Papers 269092, University of Warwick - Department of Economics.
    15. Matthew T. Holt & Joseph V. Balagtas, 2009. "Estimating Structural Change with Smooth Transition Regressions: An Application to Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1424-1431.
    16. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    17. Ochieng', Otieno Geoffrey, 2010. "Effect of Value Addition on Price: A Hedonic Analysis of Peanut in Retail Supermarkets in Nairobi, Kenya," Research Theses 134495, Collaborative Masters Program in Agricultural and Applied Economics.
    18. Goodwin, Barry K. & Harper, Daniel C. & Schnepf, Randall D., 2003. "Short-Run Demand Relationships in the U.S. Fats and Oils Complex," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), pages 1-14, April.
    19. 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.
    20. Brown, Mark G., 2009. "Preference Variable Impacts in Direct and Inverse Differential Demand Systems," Research papers 104331, Florida Department of Citrus.
    21. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:mresec:doi:10.1086/680445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/MRE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.