Hedonic Wine Price Functions with Different Prices

16 Pages Posted: 4 Apr 2016

See all articles by Edward Oczkowski

Edward Oczkowski

Charles Sturt University - Faculty of Commerce

Date Written: April 2016

Abstract

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.

Keywords: hedonic estimation, retail prices, wine prices, wine quality

Suggested Citation

Oczkowski, Edward, Hedonic Wine Price Functions with Different Prices (April 2016). Australian Journal of Agricultural and Resource Economics, Vol. 60, Issue 2, pp. 196-211, 2016, Available at SSRN: https://ssrn.com/abstract=2758399 or http://dx.doi.org/10.1111/1467-8489.12112

Edward Oczkowski (Contact Author)

Charles Sturt University - Faculty of Commerce ( email )

Wagga Wagga, NSW 2678
Australia
061 02 69332521 (Phone)
061 02 69332125 (Fax)

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