The Effect of Nonphenotypic Data on Thoroughbred Prices in the Mid-Atlantic Market

The equine sector of U.S. agriculture is a multibillion dollar industry. This paper investigates price determination factors in the mid-Atlantic market for Thoroughbred yearlings. Selected Thoroughbred producers suggested that buyers consider a combination of factors, both quantitative and qualitative in nature, when establishing the amount of money they are willing to bid on a given animal. Consequently, a model containing qualitative indicator variables, as well as quantitative variables, was used. Through regression analysis, four continuous independent variables and six sets of indicator independent variables were found to be statistically significant at the P<.05 level. The analysis revealed a preference by Thoroughbred buyers for selecting yearlings whose sire, dam, and/or maternal grandam had produced winners of superior class races. Additionally, the sex of the animal, its month of birth, its eligibility through nomination/registration for certain restricted races and bonus premiums, and/or the quality of the sale were found to be significant price determination factors.