Events and Meetings of Italian Statistical Society, Advances in Latent Variables - Methods, Models and Applications

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Hedonic Price for Italian wine
Rosella Levaggi, Paola Zuccolotto

Last modified: 2013-06-16

Abstract


The price formation mechanism in the domestic wine market has not been widely studied in spite of the importance of the Italian market as concerns sales. We use a unique dataset to estimate the hedonic price function for Italian wine sold on the Italian market in the period 2005-2011. For each bottle considered, the dataset allows us to know several characteristic such as the price by retail channel (price in large distribution and in wine shops), label characteristics, chemical analysis, sensory evaluations and experts’ judgments. The aim of the analysis is to examine the price formation mechanism in the large distribution and in wine shops and to explore the differences in price formation for red and white wines.

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