Impacts of Expert Information on Prices for an Experience Good across Product Segments: Tasting Notes andWine Prices
Kuan-Ju Chen and
Jill McCluskey ()
Journal of Agricultural and Resource Economics, 2018, vol. 43, issue 3
When purchasing experience goods, consumers often rely on information from expert evaluations. In this article, we quantify how expert information impacts prices across product segments. For higher-end products, consumers have the incentive to invest more time in research prior to purchase. Thus, expert evaluations should have a greater impact on the price of higher-end segments. We analyze the effects of tasting notes on wine prices across price categories and find that certain keywords used in tasting notes to describe wine characteristics exert a significant influence on wine prices. These effects vary across different segments, with the greatest impact on the premium segment.
Keywords: Crop Production/Industries; Demand and Price Analysis (search for similar items in EconPapers)
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