Wine price determinants. Is there a homogeneous international standard?

This article presents an international comparison of the main determinants of wine prices in specialist online wine shops. Hedonic price functions were estimated for 9624 wines spread among four datasets from France, Italy, Germany and Australia. To explain price variation data was collected on wine...

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Main Authors: Tânia Gonçalves, João Rebelo, Lina Lourenço-Gomes, José Caldas
Format: Article
Language:English
Published: Firenze University Press 2021-04-01
Series:Wine Economics and Policy
Subjects:
Online Access:https://oaj.fupress.net/index.php/wep/article/view/8879
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author Tânia Gonçalves
João Rebelo
Lina Lourenço-Gomes
José Caldas
author_facet Tânia Gonçalves
João Rebelo
Lina Lourenço-Gomes
José Caldas
author_sort Tânia Gonçalves
collection DOAJ
description This article presents an international comparison of the main determinants of wine prices in specialist online wine shops. Hedonic price functions were estimated for 9624 wines spread among four datasets from France, Italy, Germany and Australia. To explain price variation data was collected on wine classification, closure type, wine origin, medals or awards, vintage, alcohol content, color, and grape variety. Results from quantile regression models show that the wine vintage is a common price driver in all markets and quantiles. A quite similar effect was found for alcohol content. In terms of color, the implicit prices for red and white wines are also structurally different between countries, particularly in origin, blend, closure, awards and age. Thus, the markets should be assumed as heterogeneous, and the extrapolation of the results from one market to another may lead to erroneous management decisions. 
format Article
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institution Kabale University
issn 2213-3968
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language English
publishDate 2021-04-01
publisher Firenze University Press
record_format Article
series Wine Economics and Policy
spelling doaj-art-4c496685ac6b492f9ac8cbefbe1987a22025-08-20T03:51:25ZengFirenze University PressWine Economics and Policy2213-39682212-97742021-04-0110110.36253/wep-8879Wine price determinants. Is there a homogeneous international standard?Tânia Gonçalves0João Rebelo1Lina Lourenço-Gomes2José Caldas3University of Trás-os-Montes and Alto Douro, Quinta de Prados, 5001-801 Vila RealUniversity of Trás-os-Montes and Alto Douro, Quinta de Prados, 5001-801 Vila RealUniversity of Trás-os-Montes and Alto Douro, Quinta de Prados, 5001-801 Vila RealUniversity of Trás-os-Montes and Alto Douro, Quinta de Prados, 5001-801 Vila RealThis article presents an international comparison of the main determinants of wine prices in specialist online wine shops. Hedonic price functions were estimated for 9624 wines spread among four datasets from France, Italy, Germany and Australia. To explain price variation data was collected on wine classification, closure type, wine origin, medals or awards, vintage, alcohol content, color, and grape variety. Results from quantile regression models show that the wine vintage is a common price driver in all markets and quantiles. A quite similar effect was found for alcohol content. In terms of color, the implicit prices for red and white wines are also structurally different between countries, particularly in origin, blend, closure, awards and age. Thus, the markets should be assumed as heterogeneous, and the extrapolation of the results from one market to another may lead to erroneous management decisions.  https://oaj.fupress.net/index.php/wep/article/view/8879country-based comparisonhedonic analysispricingquantile regression modelsspecialist retailer prices
spellingShingle Tânia Gonçalves
João Rebelo
Lina Lourenço-Gomes
José Caldas
Wine price determinants. Is there a homogeneous international standard?
Wine Economics and Policy
country-based comparison
hedonic analysis
pricing
quantile regression models
specialist retailer prices
title Wine price determinants. Is there a homogeneous international standard?
title_full Wine price determinants. Is there a homogeneous international standard?
title_fullStr Wine price determinants. Is there a homogeneous international standard?
title_full_unstemmed Wine price determinants. Is there a homogeneous international standard?
title_short Wine price determinants. Is there a homogeneous international standard?
title_sort wine price determinants is there a homogeneous international standard
topic country-based comparison
hedonic analysis
pricing
quantile regression models
specialist retailer prices
url https://oaj.fupress.net/index.php/wep/article/view/8879
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AT joaorebelo winepricedeterminantsisthereahomogeneousinternationalstandard
AT linalourencogomes winepricedeterminantsisthereahomogeneousinternationalstandard
AT josecaldas winepricedeterminantsisthereahomogeneousinternationalstandard