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The anatomy of prices on the French fish market

Author

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  • Laurent Gobillon

    () (PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - INRA - Institut National de la Recherche Agronomique - ENS Paris - École normale supérieure - Paris, PSE - Paris School of Economics, INED - Institut national d'études démographiques)

  • François-Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)

  • Patrice Guillotreau

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes, IUML - Institut universitaire Mer et Littoral - UN - Université de Nantes - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique)

Abstract

Hedonic price regressions have become a standard tool to study how prices of commodity goods are related to quality attributes. In this paper, we extend the traditional price specification by incorporating three sources of unobserved heterogeneity related to sellers, buyers, and matches between buyers and sellers. The extended price specification is estimated on a unique exhaustive dataset of nearly 15 million transactions occurring in French wholesale fish markets from 2002 to 2007. Results show that unobserved heterogeneity plays a significant role in price formation. For some species, its inclusion in price regressions changes the coefficients of quality-related fish characteristics. Last, using data analysis techniques, we classify fish and crustacean species by the extent to which price variations are related to fish characteristics, time effects and the three sources of unobserved heterogeneity.

Suggested Citation

  • Laurent Gobillon & François-Charles Wolff & Patrice Guillotreau, 2013. "The anatomy of prices on the French fish market," PSE Working Papers halshs-00839147, HAL.
  • Handle: RePEc:hal:psewpa:halshs-00839147
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00839147
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    References listed on IDEAS

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    Cited by:

    1. Adland, Roar & Cariou, Pierre & Wolff, Francois-Charles, 2016. "The influence of charterers and owners on bulk shipping freight rates," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 69-82.

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    Keywords

    Fish; Commodity price; Unobserved heterogeneity; Variance analysis; Panel data;

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