Hedonic wine price functions with different prices

This study examines the impact that recommended retail prices, actual market prices and the release of a prominent wine guide have on Australian wine hedonic price estimates, for attributes such as sensory quality, winery reputation and grape region. In general, hedonic price estimates appear to be...

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Bibliographic Details
Published in:The Australian journal of agricultural and resource economics 2016-04, Vol.60 (2), p.196-211
Main Author: Oczkowski, Edward
Format: Article
Language:English
Subjects:
Australia
Economic theory
hedonic estimation
Market prices
Prices
retail prices
Studies
Vitaceae
wine prices
wine quality
Wines
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Summary:This study examines the impact that recommended retail prices, actual market prices and the release of a prominent wine guide have on Australian wine hedonic price estimates, for attributes such as sensory quality, winery reputation and grape region. In general, hedonic price estimates appear to be independent of prices employed. The main identified differences in estimates relate to the size of the producer and some regional impacts. For market prices only, increases in producer size are estimated to reduce prices. This implies the existence of supply chain quantity discounting price practices. The impact of an authoritative wine guide appears to have a negligible influence on prices in Australia. In the absence of market transaction prices, the common practice of employing recommended prices for hedonic wine price estimation is defendable.
ISSN:1364-985X
1467-8489
DOI:10.1111/1467-8489.12112