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Pricing heterogeneity and transaction mode: Evidence from the French fish market

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  • François-Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université)

  • Frank Asche

    (UF|IFAS - Food Systems Institute [Gainesville] - UF|IFAS - Institute of Food and Agricultural Sciences [Gainesville] - UF - University of Florida [Gainesville])

Abstract

While information technology has led to increased market integration, in many markets there are still significant heterogeneity associated with factors such as product characteristics, market location, market lots, transaction mode and buyer and seller characteristics. Using a data set of 40 million observations of up-streams fish sales in Atlantic France, we use the rich attribute information to investigate the extent to which the price differences in a highly heterogenous market can be explained, with a particular focus on the importance of transaction mode. While 78% of the quantity is sold at auctions, the remainder are over-the-counter transactions and this share is increasing. Estimation of hedonic price regressions controlling for fish attributes, local market, buyer and seller heterogeneity show that there is a price differential of 1.7% between the two transaction modes. This result remains robust when taking into account the endogeneity of the sale method through an exact matching of auction and over-the-counter transactions.

Suggested Citation

  • François-Charles Wolff & Frank Asche, 2022. "Pricing heterogeneity and transaction mode: Evidence from the French fish market," Post-Print hal-03913067, HAL.
    • Handle: RePEc:hal:journl:hal-03913067
    DOI: 10.1016/j.jebo.2022.09.002
    Note: View the original document on HAL open archive server: https://hal.science/hal-03913067v1
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    Cited by:

    1. 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).
    2. François-Charles Wolff & Frédéric Salladaré & Laurent Baranger, 2024. "A classification of buyers in first-sale fish markets: Evidence from France," Post-Print hal-04586532, HAL.

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    More about this item

    Keywords

    fish prices; over-the-counter sales; auction sales; hedonic equations;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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