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What explains Bordeaux wine prices?

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  • Jean-Marie Cardebat
  • Jean-Marc Figuet

Abstract

The aim of this article is to explain Bordeaux wine prices for the 1996-1999 vintages. The hedonic price method is applied to determine the main explanatory factors of price differences. It shows that reputation remains an important determinant of the price. However sensory characteristics have greater explanatory power compared to previous studies. Increasing competition and reductions in information asymmetries on the wine market are two important factors explaining this result.

Suggested Citation

  • Jean-Marie Cardebat & Jean-Marc Figuet, 2004. "What explains Bordeaux wine prices?," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 293-296.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:5:p:293-296
    DOI: 10.1080/1350485042000221544
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    References listed on IDEAS

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    1. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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