Estimation of a hedonic price equation for Bordeaux wine: Does quality matter?

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Abstract

In this paper the hedonic price technique is applied to Bordeaux wine. In the hedonic price function we include not only the 'objective' characteristics appearing on the label of the bottle, but also the sensory characteristics of the wine. Our data come from an experimental study in which juries have evaluated and graded a sample of Bordeaux wines. The estimation of the hedonic price equation shows that the market price is essentially determined by the objective characteristics. The estimation of a jury grade equation shows that quality, unlike the market price, is essentially determined by the sensory characteristics.

Original languageEnglish
Pages (from-to)390-402
Number of pages13
JournalEconomic Journal
Volume107
Issue number441
DOIs
Publication statusPublished - 1 Jan 1997

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