fairly consistent price increases. Both species have exhibited similari-

ties in product form when shipped from dockside although the type and

location of the markets to which they are sent differ. In 1977, 81.6

percent of grouper and 93.7 percent of all red snapper taken in the

GMRFF were shipped from dockside in fresh iced form (GMFMC, 1979).

Similarly, over half of each of these species was shipped to wholesalers.

In terms of market location, 58.4 percent of the red snapper caught was
 9
shipped to Northeastern markets, and 24.1 percent was shipped to South-

eastern markets.0 In contrast, only 15 percent of the grouper catch

went to Northeastern markets while 77 percent was shipped to markets in

the Southeast (Appendix F). Thus, while the absolute prices of the two

species differ as do the location of terminal markets, the basic trends

in prices as well as the product form for grouper and red snapper

shipped from dockside are very similar.

 In estimating price equations using price of reef fish as the

dependent variable, some bias in the parameter estimates will be

incurred. The degree of bias is related to both the relative magnitudes

of each species in total catch and the similarity of price responses to

changes in catch of each species. Florida is the dominant producer of

grouper in the GMRFF. The proportion of grouper in the total catch of

states other than Florida has been relatively insignificant. No state

other than Florida has accounted for more than 4 percent of the total

grouper catch since 1970 (GMFMC, 1979). Thus, only the price equation

for Florida appears susceptable to significant aggregation bias.


 Includes New York, Illinois, Michigan, Maryland, Pennsylvania and
Ohio.

 10ncludes South Carolina, Georgia and Florida.