| The effect of forestry consultants on timber bid prices was examined within a hedonic framework. Although consultants handled better than average sales, bid prices for consultant sales were found to be greater than could be explained by the characteristics of the sales. Consultants also generated price increases in addition to price increases associated with sealed-bid auction. Sample selection bias, buyer effects and consultant interactive effects were incorporated into the final model. On average, the increase in prices generated by consultants was found to be roughly equal to the fees they charged. |
