The Price of Happy Hens: A Hedonic Analysis of Retail Egg Prices

Jae Bong Chang, Jayson Lusk and Bailey Norwood (bailey.norwood@gmail.com)

Journal of Agricultural and Resource Economics, 2010, vol. 35, issue 3, 18

Abstract: This paper analyzes price differentials among conventional, cage-free, organic, and Omega-3 eggs using retail scanner data from two regional markets and the United States as a whole. Results reveal significant premiums attributable to cage-free (a 57% premium on average) and organic (an 85% premium on average). However, significant variation exists among geographic locations; price premiums for organic over conventional eggs in Dallas are almost twice as high as those in San Francisco. Estimates indicate that about 42% of the typically observed premium for cage-free eggs over conventional eggs (and 36% of the premium for organic eggs) can be attributed to egg color rather than differences in hens’ living conditions. Despite the large implicit price premiums for cage-free and organic, our data reveal that most shoppers are not willing to pay such high prices for cage-free and organic attributes.

Keywords: Demand and Price Analysis; Livestock Production/Industries (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (69)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:97855

DOI: 10.22004/ag.econ.97855

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