Does Boat Order in the Auction Affect the Price in Fish Markets? Hedonic Pricing for Hake in Northern Spain

Abstract

This paper estimates a hedonic price function for hake using data from a fish auction market in Northern Spain. The model includes some variables that have not been previously considered in the literature, such as the number of boats present at the auction, the number of buyers, the number of yearly landings at this port by boats, the effect of holidays, and the order of the boat in the auction, which is the main variable of interest. Aside from confirming that well-known fish characteristics (such as size and freshness) contribute to higher prices, the results show that boat order has a quadratic relationship with price, implying that there is an optimal order in the auction. Furthermore, the results also show that fishmongers pay higher prices than do larger buyers, that boats that land more often at the port get a premium, and that lower prices are reached on the days before and after a holiday.