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The Italian Grappa Market: An Analysis of Consumer Preferences Through Hedonic Price Analysis

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  • Koch, Kristian
  • Onofri, Laura

Abstract

This work carries out a hedonic price analysis in the Italian grappa market. We use a dataset composed of around 15.576 observations of retail chain prices (related to transactions taken place in Italy in the period 1997-2004) and product characteristics. We estimate the implicit price of the main product attributes. Results show that particularly bottle format, high alcohol content and brand affect the consumer’s willingness-to-pay for grappa. In particular, the Prime Uve variable presents statistically significant, positive estimated coefficients, with high magnitude, which we interpreted as a “fads and fashion effect”. In addition, we are able to capture consumer taste evolution over time and consumer taste differences in space (different consumer preferences across Italian regions).

Suggested Citation

  • Koch, Kristian & Onofri, Laura, 2006. "The Italian Grappa Market: An Analysis of Consumer Preferences Through Hedonic Price Analysis," Conference Papers 6654, University of Minnesota, Center for International Food and Agricultural Policy.
    • Handle: RePEc:ags:umcicp:6654
    DOI: 10.22004/ag.econ.6654
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    References listed on IDEAS

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    1. Cooper,Russell, 1999. "Coordination Games," Cambridge Books, Cambridge University Press, number 9780521578967, November.
    2. 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.
    3. Pierre Combris & Sebastien Lecocq & Michael Visser, 2000. "Estimation of a hedonic price equation for Burgundy wine," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 961-967.
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    Cited by:

    1. Laura Onofri & Vasco Boatto, 2015. "Cournot Oligopoly, Homogeneous Products and Grappa Market: An Econometric Study," EERI Research Paper Series EERI RP 2015/01, Economics and Econometrics Research Institute (EERI), Brussels.

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