Supplier reputation and price premium: the case of groundnuts in Rotterdam

Firm’s reputation depends on the quality of its goods and its reliability as a supplier. This may explain observed price differences between commodities from different origins but with the same observable characteristics. We analyse data for the Rotterdam market and use hedonic price analysis to show the existence of a price premium that favours the US over other origins. As secondary information points out exporter reliability as one explanation we formalise the relationship between reliability and price premiums in a theoretical model and analyse its implications.


Issue Date:
2005
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/44095
Published in:
Agricultural Economics Review, Volume 06, Issue 2
Page range:
16
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-25

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