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Auction markets for specialty food products with geographical indications
Author(s) -
Schamel Günter
Publication year - 2007
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2007.00272.x
Subject(s) - bidding , common value auction , product (mathematics) , yield (engineering) , value (mathematics) , economics , microeconomics , dutch auction , business , agricultural economics , auction theory , revenue equivalence , statistics , mathematics , materials science , geometry , metallurgy
We present a first analysis of online auction markets for specialty food products. We identify auction prices, trade volume, and value for domestic and foreign‐origin specialty ham with geographical indications (GIs) that were sold in online auctions in Germany within a 1‐month period. Applying hedonic modeling, we examine potential factors that may influence online bidding behavior and final auction prices. We estimate positive auction price effects for weight, bidding activity, and auction length, that the domestic product is sold at a discount, that higher shipping costs have a negative impact on final prices, and that auctions ending on Fridays and Saturdays yield lower prices. The model may be used to estimate the value of GIs. In our example, we estimate relative price differences of 20–30% for the GIs of three specialty hams (Prosciutto di Parma, Jamón Serrano, and Schwarzwälder Schinken).