What explains Bordeaux wine prices?
- 15 April 2004
- journal article
- research article
- Published by Informa UK Limited in Applied Economics Letters
- Vol. 11 (5), 293-296
- https://doi.org/10.1080/1350485042000221544
Abstract
The aim of this article is to explain Bordeaux wine prices for the 1996–1999 vintages. The hedonic price method is applied to determine the main explanatory factors of price differences. It shows that reputation remains an important determinant of the price. However sensory characteristics have greater explanatory power compared to previous studies. Increasing competition and reductions in information asymmetries on the wine market are two important factors explaining this result.Keywords
This publication has 3 references indexed in Scilit:
- Estimation d'une fonction de prix hédonistiques pour le vin de ChampagneÉconomie & prévision, 1998
- Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?The Economic Journal, 1997
- Hedonic Prices and Implicit Markets: Product Differentiation in Pure CompetitionJournal of Political Economy, 1974