Keywords
Hedonic analysis
Hedonic regression
Attributes
Agriculture
How to Cite
Abstract
This study aimed to review literature on the use of hedonic pricing on agricultural products. There have been considerable number of articles published in different fields of agriculture in both developed and developing countries using the hedonic technique. The model deconstructs the price of a good into its component parts, then uses regression analysis to examine how each individual attribute uniquely contributes to the item’s overall value. The review observed that in live animals, most important determinants of price were sex, age, body size and body condition and consumers would be willing to pay premium for taste, neatness and freshness in beef. In cowpea, large sized grains attracted premium, swelling capacity and colour influenced market price for rice and farm size were shown to influence farm land values. The hedonic tool is an important tool for market players, investors, consumers and policy makers as it allows the understanding of how markets operate thus increasing efficiency.
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