Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear

Atlantic cod (Gadus morhua) has been culturally important in the northeast United States (US) for hundreds of years. This research estimates a hedonic model of cod prices in the Northeast US from 2005-2011. While large fish typically receive premium prices, the largest cod receive prices that are approximately $0.20 per pound lower than fish in the next largest market category. A moderate premium for freshness is found: cod caught on trips that last four days receive $0.04 less per pound than fish that is caught on shorter trips. This discount rises to nearly $0.15 per pound for trips lasting 10 days or longer. A similar discount exists for fish that are stored for two or more days after landing. The premia estimated by the hedonic price model are quite different from the group mean premia, suggesting that bioeconomic models that incorporate price heterogeneity should consider more sophisticated price models.