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A Hedonic Price Model for Rough Rice Bid/Acceptance Markets
Author(s) -
Brorsen B. Wade,
Grant Warren R.,
Rister M. Edward
Publication year - 1984
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1241032
Subject(s) - quality (philosophy) , yield (engineering) , economics , econometrics , business , microeconomics , agricultural economics , marketing , philosophy , materials science , epistemology , metallurgy
Several quality factors are important in valuing rough rice. This paper first evaluates the ability of federal grades to explain these factors. Second, the discounts associated with various quality factors are estimated. Finally, the factors affecting acceptance of a bid are investigated. The results indicate grades are useful but inadequate in explaining observed quality differentials. The major quality factor in determining price was head yield. Stinkbug damage was the most important quality factor of those that producers could control. The probability of acceptance increased with higher than expected bids, smaller lot sizes, more bidders, and as the marketing season progressed.