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Abstract

An hedonic price framework was used to analyze the effects of product and other characteristics in explaining the variation in advertised retail prices of fresh apples. The data used for this study were obtained from retail food advertisements in North Carolina newspapers. It was found that variety, production location, seasonality, packaging, and retail store were important factors in explaining over 73 percent of the variation in advertised retail prices of fresh apples in two major cittes of North Carolina. It was also found that it is important to test and correct for heteroskedasticity in estimating hedonic regressions with cross-section data.

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