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The Positive Effect of Aging in the Case of Wine

Author

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  • Limor Dina Gonen

    (Department of Economics and Business Administration, Ariel University, Ariel 40700, Israel)

  • Tchai Tavor

    (Department of Economics and Management, The Max Stern Yezreel Valley College, Yezreel Valley 19300, Israel)

  • Uriel Spiegel

    (Department of Management, Bar-Ilan University, Ramat Gan 5290002, Israel
    Zefat College, Zefat 1320611, Israel)

Abstract

This paper examines the positive aspects of aging. Some items, such as valuable and rare stamps, old coins, works of art, and antiques, become more expensive over time. More popular examples demonstrating the positive effect of aging that influences price are the aging of boutique wine and artisan cheese. The present paper examines the wine aging process that brings about quality improvement. This process also leads to determining (i) optimal aging periods for different wines; (ii) optimal grape juice inventory allocations and prices for different wines; (iii) optimal quantities of different kinds of wine; and (iv) the time durations of wine production and consumption from each vintage. These aspects are considered in an environment in which the demand increases over time due to the aging and rarity of the product.

Suggested Citation

  • Limor Dina Gonen & Tchai Tavor & Uriel Spiegel, 2021. "The Positive Effect of Aging in the Case of Wine," Mathematics, MDPI, vol. 9(9), pages 1-16, April.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:9:p:1012-:d:546368
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    References listed on IDEAS

    as
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    Cited by:

    1. Buisman, Marjolein E. & Rohmer, Sonja U.K., 2022. "Inventory decisions for ameliorating products under consideration of stochastic demand," International Journal of Production Economics, Elsevier, vol. 252(C).
    2. Beatrice Marchi & Lucio E. Zavanella & Simone Zanoni, 2023. "Supply chain finance for ameliorating and deteriorating products: a systematic literature review," Journal of Business Economics, Springer, vol. 93(3), pages 359-388, April.
    3. Joyce P. Jacobsen, 2024. "Wine as an Investment," Wesleyan Economics Working Papers 2024-007, Wesleyan University, Department of Economics.

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