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A Comparative Study of Wine Auction Prices: Mouton Rothschild Premier Cru Classé

Author

Listed:
  • Bentzen, Jan

    (Department of Economics, Aarhus School of Business)

  • Smith, Valdemar

    (Department of Economics, Aarhus School of Business)

Abstract

Auctions of selected wines have regularly taken place internationally and from natural reasons they have mostly involved the finest wines as e.g. the top wines from Bordeaux. In order to analyse specific auction wine prices, the Mouton Rothschild (Medoc Premier Cru Classé) has been selected for investigation, where auction data have been collected from the USA (The Chicago Wine Company), Denmark (Bruun Rasmussen, Selected Wines Auctions) and from other sources as well. The price development of this specific icon wine is expected to be influenced by a lot of factors, although theoretically investment decisions concerning e.g. icon wines ought not to be highly sensitive to short-run business conditions. The empirical findings exhibit that the auction prices of the Mouton Rothschild differ relatively much between the auction houses, and the time series analysis reveals only weak evidence of co-movements between wine prices and selected business cycle indicators.

Suggested Citation

  • Bentzen, Jan & Smith, Valdemar, 2003. "A Comparative Study of Wine Auction Prices: Mouton Rothschild Premier Cru Classé," Working Papers 03-22, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2003_022
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    References listed on IDEAS

    as
    1. Ashenfelter, Orley, 1989. "How Auctions Work for Wine and Art," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 23-36, Summer.
    2. Jan Bentzen & Valdemar Smith & Søren Leth-Sørensen, 2002. "Prices of French Icon Wines and the Business Cycle: Empirical Evidence from Danish Wine Auctions," Centre for International Economic Studies Working Papers 2002-24, University of Adelaide, Centre for International Economic Studies.
    3. Jones, Gregory V. & Storchmann, Karl-Heinz, 2001. "Wine market prices and investment under uncertainty: an econometric model for Bordeaux Crus Classes," Agricultural Economics, Blackwell, vol. 26(2), pages 115-133, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wine auction prices; Mouton Rothschild; business cycles;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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