Hedonic pricing and the role of stud fees in the market for thoroughbred yearlings in Australia

Jun Sung Kim, Sophie Deborah Mitchell, Liang Choon Wang

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Using data from one of Australia's largest thoroughbred auction houses, we investigate the price determinants of thoroughbred yearlings sold at auction. We include novel key variables to construct hedonic pricing models and examine the relative role of stud fees compared to the wide range of attributes in the pricing of yearlings. We find that the price effect of stud fees is influenced by the value buyers place on both the characteristics of sires and the characteristics of sire side siblings. The findings imply that the quality of dams a sire has been matched within the breeding market has consequential effects on yearling prices through the sire's stud fee and progeny.

Original languageEnglish
Pages (from-to)439-471
Number of pages33
JournalAustralian Journal of Agricultural and Resource Economics
Volume63
Issue number3
DOIs
Publication statusPublished - 1 Jul 2019

Keywords

  • auction
  • hedonic pricing
  • stud fee
  • thoroughbred yearling

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