Hedonic price functions of some fruits produced by Tabouk agricultural development company "TADCO", Saudi Arabia

Abstract EN

The main purpose of this paper is to estimate the effect of seasonality, variety, and package on fruit prices using hedonic pricing model.

The results from previous studies suggest that production or consumption of heterogeneous goods can be analyzed by disaggregating them into more basic units (the characteristics), that better measure the dimension of what is bought and sold.

The underlying principle theme of hedonic price analysis is that consumer goods are valued based on its characteristics.

The results of the study suggest that fruit quality characteristic attributes have significant impact on prices paid by the consumer.

It appears that the hedonic price models provide an excellent explanation of how quality differentials represented by the fruit varieties and packages in addition to the seasonality are reflected in prices paid by fruit buyers.

The results may be useful for fruit producers who can reevaluate the appropriateness of fruit quality characteristics.