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The role of customer and expert ratings in a hedonic analysis of French red wine prices: from gurus to geeks?

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  • Stephen Bazen

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université)

  • Jean-Marie Cardebat

    (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics)

  • Magalie Dubois

    (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique, CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

Abstract

Wine experts' ratings provide quality information and reduce the information asymmetry for the consumer. We hypothesize that consumers' ratings will come to dominate expert ratings in the wine expertise market. We employ a hedonic regression framework on the attributes of 36,970 French red wines to determine the relative impacts of expert and Vivino community ratings on wine prices. Average consumer ratings are found to have a larger effect on price than expert scores. These results are found to be robust to outliers and the general conclusion that peers matter more than experts holds when we exclude the top-end wines.

Suggested Citation

  • Stephen Bazen & Jean-Marie Cardebat & Magalie Dubois, 2023. "The role of customer and expert ratings in a hedonic analysis of French red wine prices: from gurus to geeks?," Post-Print hal-04213314, HAL.
    • Handle: RePEc:hal:journl:hal-04213314
    DOI: 10.1080/00036846.2023.2257036
    Note: View the original document on HAL open archive server: https://hal.science/hal-04213314
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    References listed on IDEAS

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    1. Dubois, Pierre & Nauges, Céline, 2010. "Identifying the effect of unobserved quality and expert reviews in the pricing of experience goods: Empirical application on Bordeaux wine," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 205-212, May.
    2. Gibbs, Michael & Tapia, Mikel & Warzynski, Frederic, 2009. "Globalization, Superstars, and Reputation: Theory & Evidence from the Wine Industry," Journal of Wine Economics, Cambridge University Press, vol. 4(1), pages 46-61, April.
    3. Ali, Héla Hadj & Lecocq, Sébastien & Visser, Michael, 2010. "The Impact of Gurus: Parker Grades and en primeur Wine Prices," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 22-39, April.
    4. Young-Sik Kwak & Yoon-Jung Nam & Jae-Won Hong, 2021. "Effect of Online Collective Intelligence in Wine Industry: Focus on Correlation between Wine Quality Ratings and On-Premise Prices," Sustainability, MDPI, vol. 13(14), pages 1-20, July.
    5. Eric Le Fur & Jean-François Outreville, 2019. "Fine wine returns: a review of the literature," Journal of Asset Management, Palgrave Macmillan, vol. 20(3), pages 196-214, May.
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    Cited by:

    1. Faye, Benoit & Le Fur, Eric, 2024. "Heterogeneous buyer preferences behind rejecting the law of one price in the fine wines market," Economics Letters, Elsevier, vol. 239(C).

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