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Zur Effizienz des Marktes für feine Bordeauxweine

Author

Listed:
  • Egon Franck
  • Stefan Winter

    (Institute for Strategy and Business Economics, University of Zurich
    Bayerische Julius-Maximilians-Universität Würzburg)

Abstract

The more rapidly prices adjust to incorporate information, the more effi-cient the respective market is. The paper transfers the weak and the semi strong form of efficient market hypothesis proposed for capital markets to the market for fine wine. An empirical investigation using data on red wines from the Bordelais indicates that neither form of efficient market hypothesis is likely to hold in the market for fine wine. Consequently, an investor active in this market may very well design investment strategies that yield above-average returns based solely on publicly available information.

Suggested Citation

  • Egon Franck & Stefan Winter, 2002. "Zur Effizienz des Marktes für feine Bordeauxweine," Working Papers 0012, University of Zurich, Institute for Strategy and Business Economics (ISU).
    • Handle: RePEc:iso:wpaper:0012
    as

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    References listed on IDEAS

    as
    1. 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.
    2. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    3. 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.
    4. Stuart Landon & Constance E. Smith, 1998. "Quality Expectations, Reputation, and Price," Southern Economic Journal, John Wiley & Sons, vol. 64(3), pages 628-647, January.
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