What explains Bordeaux wine prices?

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.

Acknowledgements

The authors thank Steve Bazen for helpful comments. Remaining errors are their own.

Notes

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Additional information

Notes on contributors

Jean-Marc Figuet

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