Data/hora: 13/06/2024 05:08:21

Provedor de dados: | 31
País: | United States
Título: | Identifying the Effect of Unobserved Quality and Expert Reviews in the Pricing of Experience Goods: Empirical Application on Bordeaux Wine
Autores: | Dubois,   Pierre; Nauges,   Celine.
Data: | 2008-06-19
Ano: | 2007
Palavras-chave: | Quality signaling; Wine price; Wine market; Expert ratings; Demand and Price Analysis; Industrial Organization.
Resumo: | We propose a structural empirical approach à la Levinsohn and Petrin (2003) to disentangle the effect of experts’ grades from the effect of unobserved quality on the pricing of experience goods. Using a panel data set of 108 châteaux selling wine on the Bordeaux ‘en primeur’ market, we provide some empirical validation for the theoretical result that  the price set by wine producers is used as a signal for wine quality. We confirm that experts’ grades affect producers’ choice of ‘en primeur’ price above the effect of unobserved wine quality.  Our empirical results also show that failing to control for endogeneity caused by the omission of unobserved leads to over-estimate the influence of experts’ grades  on the ‘en primeur’ price.
Tipo: | Working or Discussion Paper
Idioma: | Inglês
Identificador: | http://purl.umn.edu/37320

Relação:

American Association of Wine Economists&gt;Working Papers

AAWE Working Papers

10

Formato: | 34