Work

Product differentiation and the relative importance of wine attributes: U.S. retail prices

Year: 2022

Type: article

Abstract: This paper investigates the relative importance of various attributes, including varietal, brands, and geographic origin, in explaining retail wine prices for the United States market. We use a metric based on the Shapely value, from cooperative game theory, in the context of an empirical hedonic price equation estimated using a large sample of retail wine sales for home consumption over the period 2007–2019. We find that brands alone explain more than 70% of the variation in wine prices, but geographic origin and varietals retain additional explanatory power. Furthermore, information about the geographic origin appears to be a considerably more important attribute than varietals.

Source: Journal of Wine Economics

DOI: 10.1017/jwe.2022.23

Authors: Raj Chandra, GianCarlo Moschini

Institution: Iowa State University

Language: English

Topic: Wine Industry and Tourism

Subfield: Tourism, Leisure and Hospitality Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,255

Funders: University of Chicago, Booth School of Business, University of Chicago