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(Dynamic) willingness to pay and e-commerce: Insights from sparkling wine sector in Russia

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  • Fedoseeva, Svetlana

Abstract

Although economic theory clearly provides reasons for a hedonic price function to change over time, this is not how it is traditionally approached empirically. For wine, which is one of the most widely used implications of hedonic price analysis, such time invariance can be traced down to the issues of data availability and price rigidity in the food and beverage sector. The development of e-commerce changes both these premises, providing reasons for more frequent price adjustments and making price data available at each point of time. Is willingness to pay for particular product attributes indeed time-invariant? In this paper, daily price quotes from the largest online grocery market in Russia are used to address this question using sparkling wines as an example. The results indicate that time invariance might be a rather strong empirical assumption, suggesting that the time dimension should be included into hedonic price studies whenever the data allows for it.

Suggested Citation

  • Fedoseeva, Svetlana, 2020. "(Dynamic) willingness to pay and e-commerce: Insights from sparkling wine sector in Russia," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:joreco:v:57:y:2020:i:c:s0969698919310665
    DOI: 10.1016/j.jretconser.2020.102180
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