What to show on the wine labels: A hedonic analysis of price drivers of Sicilian wines

Applied Economics

Volumn 45, Issue 19, 2013, Pages 2765-2778

  Roma, Paolo ^a   Di Martino, Giuseppe ^a   Perrone, Giovanni ^a  

^a UNIVERSITY OF PALERMO   (Italy)

Author keywords

econometric analysis; experience goods; hedonic price; labelling; wine industry

Indexed keywords

COMMODITY PRICE; ESTIMATION METHOD; HEDONIC ANALYSIS; NUMERICAL MODEL; PRICE DETERMINATION; PRICE DYNAMICS;

VITACEAE;

EID: 84862291153     PISSN: 00036846     EISSN: 14664283     Source Type: Journal    
DOI: 10.1080/00036846.2012.678983     Document Type: Article

References (59)

1. Allen, F. 1984. Reputation and product quality. RAND Journal of Economics, 15: 311-27.
2. Associazione Italiana Sommelier. 2009. DUEMILAVINI Edizione 2010, Rome, Italy: Bibenda Editore.
3. Bajic, V. 1984. An analysis of the demand for housing attributes. Applied Economics, 16: 597-610.
4. Baker, TA. 1997. Quality-adjusted price indexes for portable computers. Applied Economics, 29: 1115-23.
5. Benfratello, L, Piacenza, M and Sacchetto, S. 2009. Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines. Applied Economics, 41: 2197-209.
6. Berndt, ER, Griliches, Z and Rappaport, NJ. 1995. Econometric estimates of price indexes for personal computers in the 1990's. Journal of Econometrics, 68: 243-68.
7. Brown, KH. 2000. Hedonic price indexes and the distribution of buyers across the product space: an application to mainframe computers. Applied Economics, 32: 1801-8.
8. Can, A. 1992. Specification and estimation of hedonic housing price models. Regional Science and Urban Economics, 22: 453-74.
9. Cardebat, J-M and Figuet, J-M. 2004. What explains Bordeaux wine prices. Applied Economics Letters, 11: 293-6.
10. Cardebat, J-M and Figuet, J-M. 2009. Estimation of a hedonic price equation for Alsace, Beaujolais and Provence wines. Applied Economics Letters, 16: 921-7.
11. Chaney, IM. 2000. External effort search for wine. International Journal of Wine Marketing, 12: 5-21.
12. Chwelos, PD, Berndt, ER and Cockburn, IM. 2008. Faster, smaller, cheaper: an hedonic price analysis of PDAs. Applied Economics, 40: 2839-56.
13. Combris, P, Lecocq, S and Visser, M. 1997. Estimation of a hedonic price equation for Bordeaux wine: does quality matter?. The Economic Journal, 107: 390-402.
14. Combris, P, Lecocq, S and Visser, M. 2000. Estimation of a hedonic price equation for Burgundy wine. Applied Economics, 32: 961-7.
15. Cook, ML. 1995. The future of US agricultural cooperatives: a neo-institutional approach. American Journal of Agricultural Economics, 77: 1153-9.
16. Cowling, K and Cubbin, J. 1972. Hedonic price indices for United Kingdom cars. The Economic Journal, 82: 963-78.
17. Cropper, ML, Deck, LB and McConnell, KE. 1988. On the choice of functional form for hedonic price functions. The Review of Economics and Statistics, 70: 668-75.
18. Dubois, P and Nauges, C. 2010. Identifying the effect of unobserved quality and expert reviews in the pricing of experience goods: empirical application on Bordeaux wine. International Journal of Industrial Organization, 28: 205-12.
19. Fehder, DC, Nelling, E and Trester, JJ. 2009. Innovation and price: the case of digital cameras. Applied Economics, 41: 2229-36.
20. Fulton, ME. 1995. The future of Canadian agricultural cooperatives: a property rights approach. American Journal of Agricultural Economics, 77: 1144-52.
21. Gambero Rosso (2009) Vini d'Italia 2010, Gambero Rosso GRH, Rome, Italy
22. Garrod, G and Willis, K. 1992. The environmental economic impact of woodland: a two-stage hedonic price model of the amenity value of forestry in Britain. Applied Economics, 24: 715-28.
23. Gravel, N, Michelangeli, A and Trannoy, A. 2006. Measuring the social value of local public goods: an empirical analysis within Paris metropolitan area. Applied Economics, 38: 1945-61.
24. Greene, WH. 2008. Econometric Analysis, 6th, Upper Saddle River, NJ, USA: Pearson Education.
25. Griliches, Z. 1971. Price Indexes and Quality Change, Cambridge, MA, USA: Harvard University Press.
26. Hadj Ali, H, Lecocq, S and Visser, M. 2008. The impact of gurus: Parker grades and en primeur wine prices. The Economic Journal, 118: F158-73.
27. Hadj Ali, H and Nauges, C. 2007. The pricing of experience goods: the case of en primeur wine. American Journal of Agricultural Economics, 89: 91-103.
28. Hall, CM and Mitchell, R. 2008. Wine Marketing: A Practical Guide, 1st, Oxford, UK: Butterworth-Heinemann, Elsevier.
29. Hussain, M, Cholette, S and Castaldi, RM. 2008. An analysis of globalization forces in the wine industry: implications and recommendations for wineries. Journal of Global Marketing, 21: 33-47.
30. ISTAT (2006) La produzione di uva e di vino. Available at http://www3.istat.it/salastampa/comunicati/non_calendario/20060131_00/ (accessed 12 September 2011)
31. ISTAT (2010) Valore aggiunto ai prezzi di base dell'agricoltura per regione. Available at http://www3.istat.it/dati/dataset/20100520_00/ (accessed 12 September 2011)
32. Klein, B and Leffler, KB. 1981. The role of market forces in assuring contractual performance. Journal of Political Economy, 89: 615-41.
33. Landon, S and Smith, CE. 1997. The use of quality and reputation indicators by consumers: the case of Bordeaux wine. Journal of Consumer Policy, 20: 289-323.
34. Matas, A and Raymond, J-L. 2009. Hedonic prices for cars: an application to the Spanish car market, 1981-2005. Applied Economics, 41: 2887-904.
35. McGarry Wolf, M and Thompson, M. 2010. The importance of the information on the back label of a wine bottle on the purchase decision in Pre-AARES Conference Workshop 'The World's Wine Markets by 2030: Terroir, Climate Change, R&D and Globalization', 8-9 February, Adelaide, Australia
36. Moulton, K. 1984. "The economics of wine in California". In The Book of California Wine, Edited by: Muscatine, D, Amerine, MA and Thompson, R. 380-405. Berkeley, USA: University of California Press/Sotheby Publications.
37. Nerlove, M. 1995. Hedonic price functions and the measurement of preferences: the case of Swedish wine consumers. European Economic Review, 39: 1697-716.
38. Oczkowski, E. 1994. A hedonic price function for Australian premium table wine. Australian Journal of Agricultural Economics, 38: 93-110.
39. Oczkowski, E. 2001. Hedonic price functions and measurement error. Economic Record, 77: 374-82.
40. OIV (2011) Report of the General Director of the OIV on the world viniculture situation in 2010, presented at The 34th OIV World Congress, 24 June, Porto, Portugal. Available at www.oiv.org/uk/accueil/index.php (accessed 12 September 2011)
41. Pakes, A. 2003. A reconsideration of hedonic price indices with an application to PC's. American Economic Review, 93: 1578-96.
42. Ramsey, JB. 1969. Tests for specification errors in classical linear least-squares regression analysis. Journal of the Royal Statistical Society: Series B (Methodological), 31: 350-71.
43. Rasmussen, DW and Zuehlke, TW. 1990. On the choice of functional form for hedonic price functions. Applied Economics, 22: 431-8.
44. Rey, P and Tirole, J. 2007. Financing and access in cooperatives. International Journal of Industrial Organization, 25: 1061-88.
45. Rosen, S. 1974. Hedonic prices and implicit markets: product differentiation in pure competition. Journal of Political Economy, 82: 34-55.
46. Schamel, G and Anderson, K. 2003. Wine quality and varietal, regional and winery reputations: hedonic prices for Australia and New Zealand. Economic Record, 79: 357-69.
47. Scott Morton, FM and Podolny, JM. 2002. Love or money? The effects of owner motivation in the California wine industry. The Journal of Industrial Economics, 50: 431-56.
48. Shapiro, C. 1983. Premiums for high quality products as returns to reputations. Quarterly Journal of Economics, 98: 659-79.
49. Swaminathan, A. 2001. Resource partitioning and the evolution of specialist organizations: the role of location and identity in the US wine industry. Academy of Management Journal, 44: 1169-85.
50. Thomas, A and Pickering, G. 2003. The importance of wine label information. International Journal of Wine Marketing, 15: 58-74.
51. Thrane, C. 2004. In defence of the price hedonic model in wine research. Journal of Wine Research, 15: 123-34.
52. Tirole, J. 1996. A theory of collective reputations (with applications to the persistence of corruption and to firm quality). Review of Economic Studies, 63: 1-22.
53. Torcivia, S. 2007. Osservatorio Sulle Aziende Imbottigliatrici del Settore Vitivinicolo Siciliano, 2nd, Palermo, Italy: I.S.I
54. Unioncamere (2009) Rapporto nazionale sul settore vitivinicolo 2009. Available at http://www.unioncamere.gov.it/P42A526C305S/Rapporto-Nazionale-sul-settore-Vitivinicolo.htm (accessed 12 September 2011)
55. van Dalen, J and Bode, B. 2004. Quality-corrected price indices: the case of the Dutch new passenger car market, 1990-1999. Applied Economics, 36: 1169-97.
56. Wine Institute (2010) World wine production by country. Available at www.wineinstitute.org/resources/worldstatistics/article87 (accessed 12 September 2011)
57. Witte, AD, Sumka, HJ and Erekson, H. 1979. An estimate of a structural hedonic price model of the housing market: an application of Rosen's theory of implicit markets. Econometrica, 47: 1151-73.
58. Wood, D and Anderson, K. 2006. What determines the future value of an icon wine? New evidence from Australia. Journal of Wine Economics, 1: 141-61.
59. Yu, K and Prud'homme, M. 2010. Econometric issues in hedonic price indices: the case of internet service providers. Applied Economics, 42: 1973-94.