A hedonic analysis of Bursa's Black Fig bid prices and product quality characteristics in Turkey

Abstract

This paper quantitatively analyzed the relationship between Bursa's Black Figs characteristics and prices. Most of production comes from the Aegean Region, which is located in the western part of the country. In Turkey, fig trees are common in all of the coastal areas; however, the climatic conditions especially during the fruit maturation and drying period limit the production of dried figs on commercial basis. With the research on hedonic price theory serving as background, this study shows that bid prices for Bursa's Black Figs in Turkey are very associated with color, hull, and splotch, overripe and unripe. Bursa's Black Fig is inversely related with the prices producers get at the packers. A one percent reduction in overripe and unripe (ceteris paribus) would decrease Bursa's Black Fig price of by about 19 cents at the packers. It is an interesting result that the effects of overripe and unripe variables on price are almost the same. A negative relation has been determined between the hull and splotch variables and price. Namely, one percent increase in hull and splotch (ceteris paribus) would decrease Bursa's Black Fig price of by about 25 and 67 cents, respectively, at the packers. Color percentage is positively related with prices. One percent increase in color (ceteris paribus) will increase its price by $1.08. The results are consistent with theory, and it is concluded that increased buyer concentration favors growers, due to a special product. In addition, the study provides information for marketing, accounting and buyer decisions.