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Hedonic prices for Spanish red quality wine

Ana María Angulo (Departamento de Análisis Económico, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza, Zaragoza, Spain)
José María Gil (Unidad de Economía Agraria, Servicio de Investigación Agroalimentaria, Diputación General de Aragón, Zaragoza, Spain)
Azucena Gracia (Unidad de Economía Agraria, Servicio de Investigación Agroalimentaria, Diputación General de Aragón, Zaragoza, Spain)
Mercedes Sánchez (Departamento de Gestión de Empresas, Universidad Pública de Navarra, Campus de Arrosadia, Pamplona, Spain)

British Food Journal

ISSN: 0007-070X

Article publication date: 1 August 2000

Abstract

In this paper, market values for most of wine attributes are measured through the estimation of a hedonic price function, which relates the price of a wine to its various attributes. As more expensive wines are also associated with higher recognition of wine attributes, results also reflect consumers’ valuation of wine attributes. Data used in this paper comes from a wine catalogue in which only price categories are available. As independent variables, the following wine attributes have been considered: region of production, the year vintage, grape variety, alcoholic content and expert quality ratings. Due to the nature of available data, the hedonic price function has been estimated in the form of a Multinomial Logit model. Results indicate that the two first variables (region of production and the year vintage) are the main market price determinants while grape variety and the alcoholic contents are not significantly correlated with red wine prices.

Keywords

Citation

María Angulo, A., María Gil, J., Gracia, A. and Sánchez, M. (2000), "Hedonic prices for Spanish red quality wine", British Food Journal, Vol. 102 No. 7, pp. 481-493. https://doi.org/10.1108/00070700010336445

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MCB UP Ltd

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