Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation
Analysing the determinants of wine prices has always been a field of interest in the wine economics literature. By estimating hedonic price functions, however, most papers generally remain at the country level with regions generally neglected or treated as simple dummy variables. The aim of this pap...
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| Format: | Article |
| Language: | English |
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Firenze University Press
2021-04-01
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| Series: | Wine Economics and Policy |
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| Online Access: | https://oaj.fupress.net/index.php/wep/article/view/8880 |
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| _version_ | 1849430214383239168 |
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| author | Peter Gal Attila Jambor Sandor Kovacs |
| author_facet | Peter Gal Attila Jambor Sandor Kovacs |
| author_sort | Peter Gal |
| collection | DOAJ |
| description | Analysing the determinants of wine prices has always been a field of interest in the wine economics literature. By estimating hedonic price functions, however, most papers generally remain at the country level with regions generally neglected or treated as simple dummy variables. The aim of this paper is to analyse the determinants of wine prices at the regional level by using Latent Variable Path Modelling with Partial Least Squares and Principal Component Analysis on the example of Hungarian wines. This approach is able to capture the regional specialties of wine production and provides a better insight into price determination. Results suggest that intrinsic values play a major but ambiguous role in determining regional wine prices, especially in the case of sugar content. It also becomes apparent that specific Geographical Indications (GIs) play a crucial role in price determination, instead of GI use per se. Moreover, individual brands also have an important role, as Tier1 and Tier2 wineries tend to sell their wines at higher prices and in smaller batch sizes.
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| format | Article |
| id | doaj-art-97929a62969c41bdb3e7c3f7c7bef051 |
| institution | Kabale University |
| issn | 2213-3968 2212-9774 |
| language | English |
| publishDate | 2021-04-01 |
| publisher | Firenze University Press |
| record_format | Article |
| series | Wine Economics and Policy |
| spelling | doaj-art-97929a62969c41bdb3e7c3f7c7bef0512025-08-20T03:28:05ZengFirenze University PressWine Economics and Policy2213-39682212-97742021-04-0110110.36253/wep-8880Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputationPeter Gal0Attila Jambor1Sandor Kovacs2Corvinus University of BudapestCorvinus University of BudapestUniversity of DebrecenAnalysing the determinants of wine prices has always been a field of interest in the wine economics literature. By estimating hedonic price functions, however, most papers generally remain at the country level with regions generally neglected or treated as simple dummy variables. The aim of this paper is to analyse the determinants of wine prices at the regional level by using Latent Variable Path Modelling with Partial Least Squares and Principal Component Analysis on the example of Hungarian wines. This approach is able to capture the regional specialties of wine production and provides a better insight into price determination. Results suggest that intrinsic values play a major but ambiguous role in determining regional wine prices, especially in the case of sugar content. It also becomes apparent that specific Geographical Indications (GIs) play a crucial role in price determination, instead of GI use per se. Moreover, individual brands also have an important role, as Tier1 and Tier2 wineries tend to sell their wines at higher prices and in smaller batch sizes. https://oaj.fupress.net/index.php/wep/article/view/8880wine regionsprice determinationHungaryqualityPartial Least Squares |
| spellingShingle | Peter Gal Attila Jambor Sandor Kovacs Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation Wine Economics and Policy wine regions price determination Hungary quality Partial Least Squares |
| title | Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation |
| title_full | Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation |
| title_fullStr | Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation |
| title_full_unstemmed | Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation |
| title_short | Regional determinants of Hungarian wine prices: The role of geographical indications, objective quality and individual reputation |
| title_sort | regional determinants of hungarian wine prices the role of geographical indications objective quality and individual reputation |
| topic | wine regions price determination Hungary quality Partial Least Squares |
| url | https://oaj.fupress.net/index.php/wep/article/view/8880 |
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