Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?

Combris, Pierre; Lecocq, Sébastien; Visser, Michael

doi:10.1111/j.0013-0133.1997.165.x

Cited by 351 publications

(113 citation statements)

References 12 publications

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“…We report estimation results of hedonic price equations based on three data sets. The first one (Bordeaux I) is a sample of Bordeaux wines and formed the basis of the paper by Combris, Lecocq and Visser (1997); the second one (Burgundy) is a sample of Burgundy wines and was exploited in Combris, Lecocq and Visser (2000); the third and most recent data set is another sample of Bordeaux wines (Bordeaux II) and was analyzed in Lecocq and Visser (2001). The three data sets were generated in almost exactly the same way, and all three contain the same set of variables.…”

Section: Jones and Storchmannmentioning

confidence: 99%

What Determines Wine Prices: Objective vs. Sensory Characteristics

Lecocq¹,

Visser²

2006

J Wine Econ

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162

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The hedonic technique is applied to wines. In the price equation we include objective characteristics appearing on the label, as well as sensory characteristics and a grade assigned by expert tasters. We have three almost identically structured data sets (two on Bordeaux wines, and one on Burgundy wines). The results are used to make comparisons between two of the most important wine regions in France, and comparisons over time (the two Bordeaux data sets are sampled at different points in time). (JEL Classification: D49.) Another puzzle is the lack of correlation between price and pleasure. Perhaps it is not so surprising that a first-rate example of a little known wine can seem much more memorable than something more famous selling at ten times the price; part of the thrill is the excitement of discovery and

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Section: Jones and Storchmannmentioning

confidence: 99%

What Determines Wine Prices: Objective vs. Sensory Characteristics

Lecocq¹,

Visser²

2006

J Wine Econ

Self Cite

162

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show abstract

“…The largest part of the literature, nevertheless, is focussed on the consumer side, and basically explores the variables that can affect consumers' willingness to pay for particular characteristics. Most of these variables stem from the experience good (and possibly, credence good) nature of wine, including sensory quality, appellations, experts' ratings (Nerlove, 1995;Combris, Lecocq and Visser 1997;Landon and Smith, 1997;Oczkowski 2001;Schamel 2006;Benfratello et al, 2009; among others).…”

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confidence: 99%

The Price Premium for Organic Wines: Estimating a Hedonic Farm-Gate Price Equation

Corsi

Strøm

2013

J Wine Econ

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Organic wines are increasingly produced and appreciated. Since organic production is more costly, a crucial question is whether they benefit from a price premium. We estimate hedonic price functions for Piedmont organic and conventional wines. We use data on the production side in addition to variables of interest for consumers. Our results show that, along with characteristics of interest to consumers, some farm and producer characteristics not directly relevant for consumers do significantly affect wine prices. We find that organic wine tends to obtain higher prices than conventional wine. The price premium is not simply an addition to other price components, but organic quality modifies the impact of the other variables on price. (JEL classification: C21, D49, L11, Q12)

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“…The hedonic methodology has previously been used to estimate the returns on other heterogeneous and infrequently traded assets, such as real estate (e.g., Meese and Wallace, 1997), wine (e.g., Combris et al, 1997), and art (e.g., Renneboog and Spaenjers, 2010). The idea is to relate the prices of individual sales to a number of price-determining characteristics (e.g., the number of rooms in a house, the region of production of a bottle of wine, or the size of a painting) and a range of time dummies (e.g., years).…”

Section: Methodsmentioning

confidence: 99%

Hard assets: The returns on rare diamonds and gems

Renneboog

Spaenjers

2012

Finance Research Letters

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This paper examines the investment performance of diamonds and other gems (sapphires, rubies, and emeralds) over the period 1999-2010, using a novel data set of auction transactions. Between 1999 and 2010, the annualized real USD returns for white and colored diamonds equaled 6.4% and 2.9%, respectively. Since 2003, the returns were 10.0%, 5.5%, and 6.8% for white diamonds, colored diamonds, and other gems, respectively. Both white and colored diamonds outperformed the stock market over our time frame. Nevertheless, gem returns are positively correlated with stock market returns, suggesting the existence of stock market wealth effects.JEL classification: G11; G12; Q3; Z11.

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Estimation of a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?

Cited by 351 publications

References 12 publications

What Determines Wine Prices: Objective vs. Sensory Characteristics

What Determines Wine Prices: Objective vs. Sensory Characteristics

The Price Premium for Organic Wines: Estimating a Hedonic Farm-Gate Price Equation

Hard assets: The returns on rare diamonds and gems

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