Wine price determinants. Is there a homogeneous international standard? A quantile regression approach for wine shops
- hedonic analysis,
- quantile regression models,
- specialist retailer prices,
- country-based comparison
Copyright (c) 2021 Tânia Gonçalves, João Rebelo, Lina Lourenço-Gomes, José Caldas
This work is licensed under a Creative Commons Attribution 4.0 International License.
This article presents an international comparison of the main determinants of wine prices in specialist online wine shops. Hedonic price functions were estimated for 9624 wines spread among four datasets from France, Italy, Germany and Australia. To explain price variation data was collected on wine classification, closure type, wine origin, medals or awards, vintage, alcohol content, colour, and grape variety. Results from quantile regression models show that the wine vintage is a common price driver in all markets and quantiles. A quite similar effect was found for alcohol content. Regarding the other determinants, we found different effects in all markets, being country specific. We concluded that the wine attributes as price determinants are different between distinct price quantiles and the wine markets are heterogeneous. Thus, the extrapolation of the results from one market to another may lead to erroneous decisions.
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