The Impact of Information on Wine Auction Prices: Results of an Experiment
AbstractThis paper reports the results of an experimental wine auction. Participants of the experiment were randomly assigned to three rooms. In each room four wines had to be evaluated, but the level of information to which participants had access differed across rooms. After the evaluations, the wines were sold sequentially, by four separate Vickrey auctions with secret reservation prices. We find that certain socio-economic characteristics such as gender, income and consumption habits, have a significant impact on the willingness to pay for wine, while others such as age and nationality, do not. We also find that once individuals have read the label characteristics and extracts from wine guides, the taste of the wines does not have an additional impact on willingness to pay. Conversely, if individuals who have only tasted the wines blindly are informed about the wine characteristics and opinions from experts, their willingness to pay increases substantially.
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Bibliographic InfoPaper provided by University of Toulouse 1 Capitole in its series Open Access publications from University of Toulouse 1 Capitole with number http://neeo.univ-tlse1.fr/1307/.
Date of creation: Mar 2005
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Publication status: Published in Annales d'Économie et de Statistique (2005-03) v., p.-
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Other versions of this item:
- Sébastien LECOCQ & Thierry MAGNAC & Marie-Claude PICHERY & Michael VISSER, 2005. "The impact of information on wine auction prices: results of an experiment," Annales d'Economie et de Statistique, ENSAE, issue 77, pages 37-57.
- Sebastien Lecocq & Thierry Magnac & Marie-Claude Pichery & Michael Visser, 2004. "The impact of information on wine auction prices: results of an experiment," Research Unit Working Papers 0401, Laboratoire d'Economie Appliquee, INRA.
- Sébastien Lecocq & Thierry Magnac & Marie-Laure Pichery & Michael Visser, 1999. "The Impact of Information on Wine Auction Prices : Results of an Experiment," Working Papers 99-36, Centre de Recherche en Economie et Statistique.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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