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Title: A Hedonic Price Analysis of Differentiated Products of Unknown Quality: Freshman Sire Stud Fees in the Thoroughbred Breeding Industry
Authors: Stowe, C. Jill
Ajello, Billy
Keywords: differentiated products
freshman sire
hedonic price analysis
Thoroughbred industry
unknown quality
Issue Date: 2010
Abstract: Prices transmit information regarding the underlying quality of a product; when quality is unknown to both buyers and sellers, theory predicts that the same price should be charged for all products. However, in the Thoroughbred industry, difference fees are charged to breed to freshman sires, which are stallions of unknown quality standing their first season at stud. We find that stallion owners/ managers differentiate their products according to attributes which may predict offspring quality. A freshman sire’s own racetrack performance, standing in the state of Kentucky, and descending from a prominent sire line are found to be statistically and economically significant.
Institution/Association: Journal of Agribusiness, Volume 28, Number 1, Spring 2010
Total Pages: 12
From Page: 19
To Page: 30
Collections:Volume 28, Number 1, Spring 2010

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