Year: 2008
Type: article
Abstract: We analyze the price determinants of specialty coffees traded at e‐auctions. We hypothesize that since specialty coffees are a highly differentiated product, prices will be determined by both sensory and reputation attributes. To test our hypotheses, we estimate a hedonic price function using data from Central and South American e‐auctions and calculate the implicit prices of sensory and reputation attributes. The results show that market clearing prices are a function of sensory characteristics and reputation variables including third‐party quality ranking, country of origin, coffee variety, and quantity. The additional attribute information disclosed at e‐auctions results in substantially higher prices relative to conventional commodity coffee market prices.
Source: Agricultural Economics
Institutions: Austral University, Michigan State University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1540318199