Wine Quality and Regional Reputation: Hedonic Analysis of the Bulgarian Wine Market

Nivelin Noev

Eastern European Economics, 2006, vol. 43, issue 6, 5-30

Abstract: This paper develops a hedonic pricing model to estimate the effects of wine quality and regional and varietal reputation on prices in the Bulgarian wine market. We show, most importantly, that wine quality has a significant and positive impact. Red wines of local varieties have diminishing reputations, while white wines from local varieties have improved their standing in consumers' preferences. Our results reveal that there is significant regional reputation effect as well--at least for now--with wines sold with significant price discounts compared to Svishtov cabernet sauvignon wines. Over time, price discounts are rapidly diminishing for white wines and increasing for red wines, and regional reputations are losing significance, with an increase in the coefficients. We also show that product differentiation is important when transition markets are discussed. Regional specialization in production of a certain type of wine is displayed, and regional reputation depends strongly on it. Finally, the age of the wine has a strong positive and significant impact on market prices for red wines but is insignificant for white wines.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=7H7JC7DLDT0RJNEG (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:43:y:2006:i:6:p:5-30

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MEEE20

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().