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13 January 2015 An Inverse Demand System for the Differentiated Blue Crab Market in Chesapeake Bay
Pei Huang
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Abstract

This article studies ex-vessel demand of the blue crab market in the Chesapeake Bay. In addition to providing empirical results regarding the important local fishery, it offers a useful example of the potential for inverse demand systems for seafood where quantities are often defined prior to prices and a variety of products are obtained from a single species. This is done using a non-linear Inverse Almost Ideal Demand System coupled with seasonal patterns and controlling for endogeneity. The model used here is able to address seasonality in demand in terms of varying flexibilities over seasons and deals with endogeneity in accordance with biological stock assessment data. Empirical results show significant season-varying market behaviors and the presence of endogeneity in the demand system. All market categories are price inflexible across seasons. Cross-category flexibilities suggest that the categories are quantity substitutes in the market.

JEL Codes: Q21, Q22.

© 2015 MRE Foundation, Inc. All rights reserved.
Pei Huang "An Inverse Demand System for the Differentiated Blue Crab Market in Chesapeake Bay," Marine Resource Economics 30(2), 139-156, (13 January 2015). https://doi.org/10.1086/679971
Received: 30 April 2014; Accepted: 1 September 2014; Published: 13 January 2015
JOURNAL ARTICLE
18 PAGES

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KEYWORDS
blue crab
demand
differentiated products
endogeneity
Seasonality
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