What Determines the Future Value of an Icon Wine? New Evidence from Australia

Kym Anderson and Danielle Wood ()

No 5044, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: To what extent can the future price of icon wines be anticipated from information available at the time of their initial sale by wineries? Using a hedonic model we show that weather variables and changes in production techniques, along with the age of the wine, have significant power in explaining the secondary market price variation across different vintages of each of three icon Australian red wines. The results have implications for winemakers in determining the prices they pay for grapes and charge for their wines, and for consumers/wine investors as a guide to the prospective quality of immature icon wines.

Keywords: Wine quality; Investment under certainty; Hedonic pricing model (search for similar items in EconPapers)
JEL-codes: C23 D12 D44 D80 G12 (search for similar items in EconPapers)
Date: 2005-05
New Economics Papers: this item is included in nep-cul, nep-fin and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Chapter: What Determines the Future Value of an Icon Wine? New Evidence from Australia (2019)
Journal Article: What Determines the Future Value of an Icon Wine? New Evidence from Australia* (2006)
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