The hedonic contents of italian super premium extra-virgin olive oils

Abstract

This study focuses on the Italian market for high quality olive oil and seeks at assessing the value of a set of emerging quality clues. To this aim a hedonic price model is proposed where the price is regressed on various product attributes using a quantile regression that allows for deeper insights. The analysis covers about one thousand Italian extra-virgin olive oils reviewed by Slow Food guide. Overall, results indicate that various quality clues (e.g.: variety of the olives, the production area, the certification of origin, the organic certification) are associated with relevant price premiums. Moreover, the quantile regression reveals the values associated to quality changes at different price levels. It is worthwhile to underline that the usual negative price premium against olive oils produced in Southern Italy tends to decrease in higher market segments.