DETERMINANTS of WEANLING THOROUGHBRED AUCTION PRICES

Determinants of prices of 1,302 weanling Thoroughbreds sold at the 2010 Keeneland November Breeding Stock Sale are investigated. A hedonic pricing model is adopted to identify price determinants, and the corresponding marginal values of those determinants are estimated. Prices were responsive to pedigree quality variables, including the sire's stud fee, the stage of the sire's breeding career, and whether the dam or the dam's progeny had earned black type. In addition, individual weanling characteristics such as gender, age, state of birth, and sale placement influenced price. Results can be used as a decision tool by both buyers and sellers.