Do Expert Reviews Affect the Demand for Wine?

Richard Friberg and Erik Grönqvist ()

American Economic Journal: Applied Economics, 2012, vol. 4, issue 1, 193-211

Abstract: We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. We find small demand-enhancing effects of neutral reviews and no evidence of important negative effects from unfavorable reviews. Restrictions on the state-owned monopoly retailer and the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand. (JEL D12, L66, L81, M31, M37)

JEL-codes: D12 L66 L81 M31 M37 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/app.4.1.193
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Citations: View citations in EconPapers (35)

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