Understanding diamond pricing using unconditional quantile regressions

Nicolas Vaillant and François-Charles Wolff
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Nicolas Vaillant: LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper investigates the relationship between the selling price of diamonds and their weight in carats. For this purpose, we use a unique sample of 112,080 certified diamonds collected from www.info-diamond.com during the first week of July 2011. We find substantial differences in pricing depending on cut shape. The price of diamonds increases markedly with the carat weight, with a price elasticity equal to 1.94. However, estimates from unconditional quantile regressions show that the price-weight elasticity is not constant since it rises along the price distribution of diamonds. Finally, we observe the existence of significant increases in prices for diamonds featured with round weights compared to gems just below these threshold weights.

Keywords: unconditional quantile regressions; diamonds; discontinuity in price; hedonic equation (search for similar items in EconPapers)
Date: 2013
Note: View the original document on HAL open archive server: https://hal.science/hal-03914263
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Published in Asian Economic and Financial Review, 2013, 3 (11)

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Related works:
Journal Article: Understanding Diamond Pricing Using Unconditional Quantile Regressions (2013)
Working Paper: Understanding diamond pricing using unconditional quantile regressions (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03914263

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