The Price of Fish Quality
By E. Roth, M. Nielsen, H. Pickering, S. Jaffry, D. Whitmarsh, P. Wattage, and J. Frere
ABSTRACT
This paper represents part of the project "Market Driven Incentives for sustainable Fisheries Management" (MISSFISH) - FAIR CT984255. One of the project objectives is to test and compare consumers responsiveness to "quality" differentiated seafood products adapting both revealed and stated preference methodologies. This paper aims at revealing consumers' preference for quality graded fish products from existing data in Denmark and United Kingdom for the related, non-differentiated private good - fish for consumption. The model adopted is a hedonic pricing model for the implicit price of the characteristic "quality" which necessarily is part of the product - fish for consumption. To day both the Danish and the British market for fish does not explicitly state the "quality" of fish in the consumers market. It is most often a credence parameter. This paper shows the first results of adopting a revealed preference model for indirect benefit estimation on existing quality differentiated fish at first hand sales. We explicitly discuss the assumptions of "weak complementarity" and "derived demand" necessary to run the model.
The welfare measure for an increase in "quality" for major fishspecies is estimated on first-hand-sales data following the European Union established trade norms for quality-grading and size-categories.
KEYWORDS: fish quality, revealed preference, hedonic pricing, consumers' preference, derived demand
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