Abstract
In this paper, market values for most of wine attributes are measured through the estimation of a hedonic price function, which relates the price of a wine to its various attributes. As more expensive wines are also associated with higher recognition of wine attributes, results also reflect consumers’ valuation of wine attributes. Data used in this paper comes from a wine catalogue in which only price categories are available. As independent variables, the following wine attributes have been considered: region of production, the year vintage, grape variety, alcoholic content and expert quality ratings. Due to the nature of available data, the hedonic price function has been estimated in the form of a Multinomial Logit model. Results indicate that the two first variables (region of production and the year vintage) are the main market price determinants while grape variety and the alcoholic contents are not significantly correlated with red wine prices.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
