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California Wine Winners: A Hedonic Analysis Of Regional And Winery Reputation Indicators

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  • Schamel, Guenter

Abstract

We hypothesize that quality signals improve over time with the quality performance of a wine producer, and that spillovers will affect other producers within the same region. For this purpose, we estimate a hedonic pricing model for premium California wine. Data source is the annual publication "California Wine Winners" accumulated over the judging years 1990-2001. Quality indicators for 19,583 wines are medals awarded during nine annual wine competitions, variety, regional origin, judging age as well as derived producer (brand) and regional reputation indicators. The data confirms that a wine's price is related to its own quality and to producer/regional reputation for quality.

Suggested Citation

  • Schamel, Guenter, 2002. "California Wine Winners: A Hedonic Analysis Of Regional And Winery Reputation Indicators," 2002 Annual meeting, July 28-31, Long Beach, CA 19864, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19864
    DOI: 10.22004/ag.econ.19864
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    3. Schamel, Guenter & Anderson, Kym, 2001. "Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125877, Australian Agricultural and Resource Economics Society.
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    10. Landon, Stuart & Smith, Constance, 1997. "The Use of Quality and Reputation Indicators by Consumers: The Case of Bordeaux Wine," MPRA Paper 9283, University Library of Munich, Germany.
    11. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
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    Cited by:

    1. Saens, Rodrigo & Berríos, Rodrigo, 2012. "The country brand trap," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Carew, Richard C. & Florkowski, Wojciech J. & Meng, Ting, 2016. "Segmenting Wine Market: California Red and White Wine Retail Prices in British Columbia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235253, Agricultural and Applied Economics Association.
    3. Schamel, Günter, 2005. "German Wine: Measurement and Evaluation of Product Quality," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    4. Liang, Jiaji & Hu, Wuyang, 2018. "Hedonic Price Analysis: A View of the Wine Industry in Kentucky," 2018 Annual Meeting, August 5-7, Washington, D.C. 274050, Agricultural and Applied Economics Association.
    5. Oczkowski, Edward, 2019. "The relation between Australian wine show results and prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), July.

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