COMPARING END-USE VALUES FOR NORTH DAKOTA HARD RED SPRING WHEAT VARIETIES

Markets for agricultural products may be inefficient when signals do not adequately reflect product characteristics important to market participants. Although preferences can be explicitly stated through price premiums or characteristic values can be determined via hedonic methods, the problem is compounded when product quality information is costly to obtain. Bundling of quality traits by variety can serve to signal product quality. A procedure is developed in this paper to derive the value of different varieties in meeting buyer demands. An application to the hard red spring market wheat both validates the ability of the procedure to distinguish among varieties, as well as provides empirical support to the existence of Akerlof's lemon market in the release of wheat varieties.


Issue Date:
2001
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/23657
Total Pages:
23
Series Statement:
Staff Paper Report AAE 01005




 Record created 2017-04-01, last modified 2017-08-24

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