The price of pretty: characteristics of black Tahitian pearls and their implicit values

French Polynesia’s economy is largely dependent on the black pearl industry and associated export revenues. Accordingly, there is a need to understand fully the factors that influence quality and price of pearls – and threats to future sustainability. Focus, thus far, has been on production practices that affect pearl characteristics and quality. Although there is a generally accepted hierarchy in the characteristics of black pearls that determine quality and price, the contributory value of specific characteristics and their interdependence has not been assessed. We used information from two retailers that supply distinct markets to estimate the implicit value of black pearl characteristics, i.e. grade, shape and size. Calculated premiums and discounts revealed key similarities between retailers including that a more preferred shape demanded larger premiums than an improved grade. Results of this analysis will help direct research aimed at modifying production methods to increase the yield of higher value pearls. This is especially important given that climate change will, in fact, affect many environmental parameters that influence pearl quality. If ignored, such changes have the potential to negatively impact the quality of produced pearls with profound socio-economic consequences.