Identifying the effect of unobserved quality and expert reviews in the pricing of experience goods : empirical application on Bordeaux wine / Pierre Dubois and Céline Nauges Dubois, Pierre

User activity

Share to:
View the summary of this work
Author
Dubois, Pierre
Subjects
Wine industry.; Unobserved quality; Wine - Marketing.
Summary
"We propose a structural empirical approach a la Levinsohn and Petrin (2003) to disentangle the effect of experts' grades from the effect of unobserved quality in the pricing of experience goods. Using a panel data set of 108 chateaux 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 quality leads to over-estimate the influence of experts' grades on the "primeur" price"--Abstract.
Bookmark
http://trove.nla.gov.au/work/1485483
Work ID
1485483

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this work

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this work

Add a comment


Show comments and reviews from Amazon users