The Impact of Inventory on Tuna Price: An Application of Scaling in the Rotterdam Inverse Demand System

Fu-Sung Chiang, Jonq-Ying Lee and Mark G. Brown

Journal of Agricultural and Applied Economics, 2001, vol. 33, issue 3, 403-411

Abstract: This study adopted the scaling approach to examine the impacts of inventories on tuna auction prices in Japan using the Rotterdam inverse demand system. The inclusion of two inventory variables in the model only increases the number of parameters by two. Results indicate that frozen tunas are more likely to be close substitutes, fresh and frozen tunas of the same species are also likely to be substitutes, and inventory had significant impacts on auction prices.

Date: 2001
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