IDEAS home Printed from https://ideas.repec.org/a/mes/eaeuec/v43y2006i6p5-30.html
   My bibliography  Save this article

Wine Quality and Regional Reputation: Hedonic Analysis of the Bulgarian Wine Market

Author

Listed:
  • NIVELIN NOEV

Abstract

This paper develops a hedonic pricing model to estimate the effects of wine quality and regional and varietal reputation on prices in the Bulgarian wine market. We show, most importantly, that wine quality has a significant and positive impact. Red wines of local varieties have diminishing reputations, while white wines from local varieties have improved their standing in consumers' preferences. Our results reveal that there is significant regional reputation effect as well--at least for now--with wines sold with significant price discounts compared to Svishtov cabernet sauvignon wines. Over time, price discounts are rapidly diminishing for white wines and increasing for red wines, and regional reputations are losing significance, with an increase in the coefficients. We also show that product differentiation is important when transition markets are discussed. Regional specialization in production of a certain type of wine is displayed, and regional reputation depends strongly on it. Finally, the age of the wine has a strong positive and significant impact on market prices for red wines but is insignificant for white wines.

Suggested Citation

  • Nivelin Noev, 2006. "Wine Quality and Regional Reputation: Hedonic Analysis of the Bulgarian Wine Market," Eastern European Economics, Taylor & Francis Journals, vol. 43(6), pages 5-30, December.
    • Handle: RePEc:mes:eaeuec:v:43:y:2006:i:6:p:5-30
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7H7JC7DLDT0RJNEG
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Storchmann, Karl, 2008. "The impact of the wine industry on hotels and restaurants in Walla Walla," Working Papers 37358, American Association of Wine Economists.
    2. García Arancibia, Rodrigo & Rossini, Gustavo & Depetris Guiguet, Edith, 2015. "Wine Label Descriptors and Shelf Price Paid by Argentine Consumers," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), pages 1-17.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:eaeuec:v:43:y:2006:i:6:p:5-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MEEE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.