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Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear

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  • Min-Yang Lee

Abstract

Atlantic cod (Gadus morhua) has been culturally important in the northeast United States (US) for hundreds of years. This research estimates a hedonic model of cod prices in the Northeast US from 2005-2011. While large fish typically receive premium prices, the largest cod receive prices that are approximately $0.20 per pound lower than fish in the next largest market category. A moderate premium for freshness is found: cod caught on trips that last four days receive $0.04 less per pound than fish that is caught on shorter trips. This discount rises to nearly $0.15 per pound for trips lasting 10 days or longer. A similar discount exists for fish that are stored for two or more days after landing. The premia estimated by the hedonic price model are quite different from the group mean premia, suggesting that bioeconomic models that incorporate price heterogeneity should consider more sophisticated price models.

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  • Min-Yang Lee, 2014. "Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 259-277.
    • Handle: RePEc:ucp:mresec:doi:10.1086/677769
    DOI: 10.1086/677769
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    3. Frank Asche & Julia Bronnmann, 2017. "Price premiums for ecolabelled seafood: MSC certification in Germany," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), pages 576-589, October.
    4. Kyrre Rickertsen & Frode Alfnes & Pierre Combris & Géraldine Enderli & Sylvie Issanchou & Jason F. Shogren, 2017. "French Consumers' Attitudes and Preferences toward Wild and Farmed Fish," Marine Resource Economics, University of Chicago Press, vol. 32(1), pages 59-81.
    5. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    6. 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).
    7. 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.
    8. Cecilia Hammarlund, 2015. "The Big, the Bad, and the Average: Hedonic Prices and Inverse Demand for Baltic Cod," Marine Resource Economics, University of Chicago Press, vol. 30(2), pages 157-177.
    9. 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.
    10. 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).
    11. Julia Bronnmann & Isaac Ankamah-Yeboah & Max Nielsen, 2016. "Market Integration between Farmed and Wild Fish: Evidence from the Whitefish Market in Germany," Marine Resource Economics, University of Chicago Press, vol. 31(4), pages 421-432.
    12. 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.
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