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A hedonic price analysis for the Italian wine in the domestic market

Author

Listed:
  • Eugenio Brentari

    ()

  • Rosella Levaggi

    ()

  • Paola Zuccolotto

    ()

Abstract

Price formation in the domestic market has not been widely studied in spite of the importance of the Italian wine market in terms of sales. We use a unique dataset to estimate the hedonic price function for Italian wine sold on the Italian market in the period 2005–2011. For each bottle considered, the dataset records several characteristics such as the price by retail channel (on the mass market and in wine shops), label characteristics, chemical analysis, sensory evaluations and experts’ opinions. The objective of the analysis is to examine price setting on the mass market and in wine shops and to explore the differences in price formation for red and white wines. Our results have been obtained using an innovative technique that consists of combining hedonic price techniques with dimensionality reduction tools. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Eugenio Brentari & Rosella Levaggi & Paola Zuccolotto, 2015. "A hedonic price analysis for the Italian wine in the domestic market," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 999-1012, May.
  • Handle: RePEc:spr:qualqt:v:49:y:2015:i:3:p:999-1012
    DOI: 10.1007/s11135-014-0102-z
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    References listed on IDEAS

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    6. Luigi Benfratello & Massimiliano Piacenza & Stefano Sacchetto, 2009. "Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2197-2209.
    7. Rosella Levaggi & Eugenio Brentari, 2014. "The Hedonic Price for Italian Red Wine: Do Chemical and Sensory Characteristics Matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 30(4), pages 385-397, September.
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