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21 April 2016 Characteristics of Demand Structure and Preferences for Wild and Farmed Seafood in Germany: An Application of QUAIDS Modeling with Correction for Sample Selection
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Abstract

The production of farmed fish is growing rapidly and presents a sustainable and possibly low-cost alternative to wild fish. Thus, we may expect retail prices of farmed to be lower than prices of wild fish and demand to be less elastic. Otherwise, marketing of farmed fish may generate some extra value that justifies higher prices and may exhibit more elastic demand. To test these hypotheses, we employ monthly household scanner panel data for Germany from 2006 to 2010 for six frozen seafood products that include farmed and wild fish. A QUAIDS model is estimated by a consistent two-step procedure to account for censoring of the dependent variable. We find consumers to be price sensitive, particularly with regard to the high-value seafood species salmon and shrimp. This price elastic market implies that the German seafood industry still has the potential for growing revenues if production increases.

JEL Codes: C32, C33, D12, Q22.

© 2016 MRE Foundation, Inc. All rights reserved.
Julia Bronnmann, Jens-Peter Loy, and Karen J. Schroeder "Characteristics of Demand Structure and Preferences for Wild and Farmed Seafood in Germany: An Application of QUAIDS Modeling with Correction for Sample Selection," Marine Resource Economics 31(3), (21 April 2016). https://doi.org/10.1086/686692
Received: 30 April 2014; Accepted: 1 November 2015; Published: 21 April 2016
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