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What's that got to do with the price of fish? Buyers behavior on the Ancona fish market

Author

Listed:
  • Mauro Gallegati

    (Polytechnic University of Marche - Polytechnic University of Marche)

  • Gianfranco Giulioni

    (Ud'A - Università degli studi "G. d'Annunzio" Chieti-Pescara [Chieti-Pescara])

  • Alan Kirman

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Antonio Palestrini

    (UNITE - Universita degli studi di Teramo - University of Teramo [Italie])

Abstract

In this paper we analyze the Ancona wholesale fish market (MERITAN) where transactions take place in three simultaneous Dutch auctions. Our objective is to characterize the behavior of market participants and, in particular, buyers in such a market structure. Our analysis of the data shows that buyer-seller relationships are less important than in a pairwise bargaining market such as the Marseille Fish market but that a significant amount of "loyalty" is still present under the auction mechanism. We provide an explanation of the "declining price paradox" for the fish market of Ancona by linking the rule used by the buyers to set their bid to the relationship between the variation in the price of the last transactions in the day and the quantity of fish available on that day. In fact, the average price tends to increase for last transactions on days characterized by limited supply of fish.

Suggested Citation

  • Mauro Gallegati & Gianfranco Giulioni & Alan Kirman & Antonio Palestrini, 2010. "What's that got to do with the price of fish? Buyers behavior on the Ancona fish market," Working Papers halshs-00545129, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00545129
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00545129
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    References listed on IDEAS

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    1. Complexity, & BBC bias
      by chris in Stumbling and Mumbling on 2016-01-25 20:07:40

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    Cited by:

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    2. Daniele Giachini, 2018. "Rationality and Asset Prices under Belief Heterogeneity," LEM Papers Series 2018/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Frédéric Salladarré & Patrice Guillotreau & Patrice Loisel & Pierrick Ollivier, 2015. "The declining price anomaly in sequential auctions with asymmetric buyers: Evidence from the Nephrops norvegicus market in France," Working Papers hal-01147207, HAL.
    4. Laurent Gobillon & François Charles Wolff & Patrice Guillotreau, 2013. "Evaluating the law of one price using micro panel data," PSE Working Papers halshs-00849075, HAL.
    5. Sanna Laksa & Daniel Marszalec, 2020. "Morning-Fresh: Declining Prices and the Right-to-Choose in a Faroese Fish Market," CIRJE F-Series CIRJE-F-1141, CIRJE, Faculty of Economics, University of Tokyo.
    6. Vishnu V. Narayan & Enguerrand Prebet & Adrian Vetta, 2019. "The Declining Price Anomaly is not Universal in Multi-Buyer Sequential Auctions (but almost is)," Papers 1905.00853, arXiv.org.
    7. Sylvain Mignot & Gabriele Tedeschi & Annick Vignes, 2012. "An Agent Based Model of Switching: The Case of Boulogne S/mer Fish Market," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 15(2), pages 1-3.
    8. Guerci, E. & Kirman, A. & Moulet, S., 2014. "Learning to bid in sequential Dutch auctions," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 374-393.

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    More about this item

    Keywords

    wholesale fish market; Dutch auction;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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