Explaining champagne prices in Scandinavia - what is the best predictor?
This paper analyses the retail prices of champagnes sold in the Scandinavian countries. Price data for the champagnes contain nearly 380 observations including a range of quality attributes of each champagne. The empirical part of the analysis reveals that the retail prices of champagne can be fairly well explained by a hedonic price function with a degree of explanation corresponding to approximately 60 per cent. However the ratings by the wine experts, in this case Robert Parker, Wine Spectator and to a lesser extent the French ‘1855 Notation’, do just as well in terms of explaining the retail prices of champagnes. Especially the rating of champagnes by Robert Parker seems to be the most influential concerning the sales prices.
|Date of creation:||01 Jan 2007|
|Contact details of provider:|| Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark|
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Oczkowski, Edward, 2001. "Hedonic Wine Price Functions and Measurement Error," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 374-382, December.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2007_007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt)
If references are entirely missing, you can add them using this form.