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Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices

Author

Listed:
  • Rachel A. Smith

    (University of San Francisco
    Square, Inc.)

  • C. Nicholas McKinney

    (Rhodes College)

  • Steven B. Caudill

    (Florida Atlantic University
    University of Sassari)

  • Franklin G. Mixon

    (Columbus State University)

Abstract

This study fills a void in the literature by providing the first evaluation of the impact of consumer ratings on beer prices using hedonic methods. Our work is based on a dataset consisting of over 400 beers and includes information on calorie content, alcohol content, user rating, and style for each beer. Our results indicate that a 10-point increase in consumer rating is associated with about a $0.50 increase in the price of beer per unit.

Suggested Citation

  • Rachel A. Smith & C. Nicholas McKinney & Steven B. Caudill & Franklin G. Mixon, 2016. "Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-10, December.
    • Handle: RePEc:spr:agfoec:v:4:y:2016:i:1:d:10.1186_s40100-016-0068-3
    DOI: 10.1186/s40100-016-0068-3
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    References listed on IDEAS

    as
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    18. Justin A. Lee & Steven B. Caudill & Franklin G. Mixon, 2014. "Shine bright like a diamond: a hedonic model of grading and pricing an experience good," Applied Economics, Taylor & Francis Journals, vol. 46(16), pages 1829-1838, June.
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    Cited by:

    1. Steven B. Caudill & Franklin G. Mixon, 2020. "Estimating Bargaining Power in Real Estate Pricing Models: Conceptual and Empirical Issues," JRFM, MDPI, vol. 13(5), pages 1-8, May.
    2. Anna Carbone & Luca Cacchiarelli & Valentina Sabbatini, 2018. "Exploring quality and its value in the Italian olive oil market: a panel data analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-15, December.
    3. Sandra Rousseau & Machteld Joly & Eline Poelmans, 2024. "Search characteristics, online consumer ratings, and beer prices," Agribusiness, John Wiley & Sons, Ltd., vol. 40(4), pages 804-824, October.

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