Globalization, Superstars, and the Importance of Reputation: Theory & Evidence from the Wine Industry

Michael Gibbs, Mikel Tapia and Frédéric Warzynski
Additional contact information
Mikel Tapia: Universidad Carlos III de Madrid, Postal: Universidad Carlos III de Madrid

No 09-3, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: We develop a simple model of the effects of reputation on wine prices. An increasing fraction of consumers who are “naïve” (less well informed about wine quality) results in a stronger sensitivity of wine prices to ratings of quality. We then use data on prices and Robert Parker’s ratings of wines, to show that prices have become more related to Parker ratings over time. In addition, we find that a change in Parker rating has a stronger effect on price, the stronger is the wine’s reputation.

Keywords: No; keywords (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009-02-09
New Economics Papers: this item is included in nep-agr, nep-cul and nep-mkt
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.hha.dk/nat/wper/09-3_fwa.pdf (application/pdf)

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:hhs:aareco:2009_003

Access Statistics for this paper

More papers in Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark. Contact information at EDIRC.
Bibliographic data for series maintained by Helle Vinbaek Stenholt ( this e-mail address is bad, please contact ).