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Sea Scallops: Examining the Demand for Size and Freshness Public Deposited

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  • Hedonic models reveal the marginal implied prices of attributes; these premia represent the intersection of supply and demand for those attributes. Understanding the demand for these attributes is critical for policy analysis that may influence those attributes. While Rosen (1974) proposes a two-step method to recover demand, Kristofersson and Rickertsen (2004, 2007) illustrate a one-step method for estimating demand for these attributes simultaneously with the main hedonic model using a mixed linear model. These methods are applied to twelve years of Atlantic Sea Scallop transactions to recover the demand for two aspects of quality: size and freshness. Freshness can be difficult to measure and trip length often is used as a proxy. In the Northeast US, most scallops are typically shucked on deck and minimal processing occurs after scallops are landed - buyers may repackage, treat with preservatives, or simply resell fresh scallops. This handling may expose meats to high temperatures or sunlight, both of which may degrade product quality. We control for this by constructing various heat exposure metrics from climate reanalysis data. Preliminary results suggest substantial premia for the largest size classes, downward sloping demand for size. We also find evidence of assymetric cross-size effects: the quantity supplied of large scallops affects the price of smaller scallops, but the quantity supplied of small scallops does not affect the price of large scallops.
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  • Seattle, Washington, USA
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