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The Impact of Gurus: Parker Grades and "En Primeur" Wine Prices

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  • HélaHadj Ali
  • Sébastien Lecocq
  • Michael Visser

Abstract

This article looks at the impact of Robert Parker's oenological grades on the so-called "en primeur" prices of young Bordeaux wines. The Parker grades are usually published in the spring of each year, before the wine prices are established. However, the wine grades for 2003 were published much later, in the autumn, "after" the determination of prices. This unusual reversal is exploited to estimate a Parker effect which we find to be, on average, worth 2.80 euros per bottle of wine. We also use grade-specific effects to predict what prices would have been had Parker attended the 2003 spring tasting. Copyright © The Author(s). Journal compilation © Royal Economic Society 2008.

Suggested Citation

  • HélaHadj Ali & Sébastien Lecocq & Michael Visser, 2008. "The Impact of Gurus: Parker Grades and "En Primeur" Wine Prices," Economic Journal, Royal Economic Society, vol. 118(529), pages 158-173, June.
  • Handle: RePEc:ecj:econjl:v:118:y:2008:i:529:p:f158-f173
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    References listed on IDEAS

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    1. Héla Hadj Ali & Céline Nauges, 2007. "The Pricing of Experience Goods: The Example of en primeur Wine," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 91-103.
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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