A Hedonic Price Model for Rough Rice Bid/Acceptance Markets

Abstract

Several quality factors are important in valuing rough rice. This paper first evaluates the ability of federal grades to explain these factors. Second, the discounts associated with various quality factors are estimated. Finally, the factors affecting acceptance of a bid are investigated. The results indicate grades are useful but inadequate in explaining observed quality differentials. The major quality factor in determining price was head yield. Stinkbug damage was the most important quality factor of those that producers could control. The probability of acceptance increased with higher than expected bids, smaller lot sizes, more bidders, and as the marketing season progressed.

House Price Prediction: Hedonic Price Model vs. Artificial Neural Network

“…Hedonic price theory has been applied to valuation of agricultural commodities (Brorsen et al, 1984;Ethridge and Davis, 1982;Wilson, 1984), residential amenities (Blomquist and Worley, 1981;McMillan et al,1980;Witte et al, 1979;and Milon et al, 1984,) and wildlife related recreation resources (Pope and Stoll, 1985;Livengood, 1983;Pope et al, 1984;and Messonnier and Luzar, 1990). Other applications have involved the estimation of the benefits of environmental improvements (Freeman, 1979;Blomquist and Worley, 1981;Harrison and Rubinfeld, 1978;and McMillan et al, 1980).…”

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“…Brorsen et al, 1984;Francis, 1990;Andargachew and Brokken, 1993;Parker, 1993;Parker and Zilberman, 1993;Williams et al, 1993;Oczkowski, 1994;Rodriguez et al, 1995). 10 The general form of the implicit price function may be written as P = F(Q,C) + e where P is the observed price of the product, Q is a set of qualitative (discrete) variables or factors each with more than one category, C is a set of quantitative variables (covariates), and e is an error term.…”