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When Higher Quality Does Not Translate to Higher Prices: A Case of Quality and Specialty Coffees from the Cup of Excellence Auctions

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  • Wilson, Norbert

Abstract

This study investigates the Cup of Excellence coffee auctions and explains with behavioral economics observed intransitives in choice sets. Buyers are selecting lower quality coffees and paying higher prices for these coffees because they receive a higher rank. The estimates suggest that the representativeness and the framing heuristics explain the price premium for higher ranked coffees.

Suggested Citation

  • Wilson, Norbert, 2014. "When Higher Quality Does Not Translate to Higher Prices: A Case of Quality and Specialty Coffees from the Cup of Excellence Auctions," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170701, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170701
    DOI: 10.22004/ag.econ.170701
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    References listed on IDEAS

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    Cited by:

    1. Aldott, Zoltan, 2021. "Predicting Specialty Coffee Auction Prices Using Machine Learning," Warwick-Monash Economics Student Papers 15, Warwick Monash Economics Student Papers.

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