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Factors influencing wine ratings in an online wine community: The case of Trentino–Alto Adige J. Wine Econ. (IF 1.4) Pub Date : 2024-03-14 Giulia Gastaldello, Isabel Schäufele-Elbers, Günter Schamel
Consumers often struggle to make their choice in the highly diversified wine market. With wine being an experience good, consumers must rely on extrinsic characteristics, e.g., information on the label. Thus, easily available quality signals like consumer ratings have become an increasingly useful and widespread tool. Vivino is one of the largest online wine communities with over 60 million users,
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Willingness to pay for female-made wine: Evidence from an online experiment J. Wine Econ. (IF 1.4) Pub Date : 2024-03-13 Alicia Gallais, Florine Livat
The wine industry, considered to be male-dominated, has seen a growing share of women winemakers. Using a randomized online experiment, we investigate how the producer’s gender influences consumers’ willingness to pay for the wine. Gender can be identified either from the first name of the producer or from a gendered group of wine producers. Using a Tobit and a double-hurdle model, our results suggest
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The determinants of winery visitors for local wine and non-wine products in the Northern Appalachian states J. Wine Econ. (IF 1.4) Pub Date : 2024-03-04 Shang-Ho Yang, Kiyokazu Ujiie, Timothy Woods, Shuay-Tsyr Ho
The development and expansion of wineries in Appalachian states in the United States over the past 20 years has received attention, while the study of non-wine product consumption in wineries has been very limited. Wineries increasingly include these non-wine products as complementary products in their marketing portfolio. This study analyzes the determinants of wine and non-wine spending among winery
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Sounds too feminine? Blind tastings, phonetic gender scores, and the impact on professional critics J. Wine Econ. (IF 1.4) Pub Date : 2024-03-04 Daniel Kaimann, Clarissa Laura Maria Spiess Bru
We shed light on assessing product quality in blind tastings and their potential (gender) biases. We study how phonetic traits of grape varieties suggest product attributes in the context of professional reviews. This study aims to close this research gap and analyze how product variety and phonetic name traits affect expert ratings. We obtained data on 18,609 wines and their ratings from Wine Enthusiast
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Tastings at Tea Time: The Princeton Wine Group J. Wine Econ. (IF 1.4) Pub Date : 2024-02-29 Burton G. Malkiel
This is the story of the Princeton Wine Group, a group whose membership has been relatively constant for almost 40 years. This group has enjoyed 244 blind tastings involving 1,708 different wines. A statistical analysis was performed at each tasting examining whether participants ranked the quality of wines similarly and whether the preferences of the group were correlated with several variables including
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Effects of hypertension diagnoses on alcohol consumption among Chinese Adults—A Two-dimensional regression discontinuity analysis J. Wine Econ. (IF 1.4) Pub Date : 2024-02-14 Juerong Huang, Hongjing Dang, Yue Hu, Qihui Chen
Exploiting the fact that hypertension is diagnosed when a person’s blood pressure reading exceeds a medically specified threshold (90 mmHg for diastolic blood pressure or 140 mmHg for systolic blood pressure), this study estimates the effect of a first-ever hypertension diagnosis on Chinese adults’ alcohol consumption using a two-dimensional regression discontinuity design. Analyzing data on 10,787
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The beer garden state: Neolocalism and clustering of craft breweries in New Jersey J. Wine Econ. (IF 1.4) Pub Date : 2024-02-05 Geoffrey Fouad, Robert H. Scott
This paper investigates the growth and clustering of craft breweries in New Jersey. We compiled a historical dataset from 1995 to 2020 that allows us to measure the degree of geographic clustering among craft breweries in New Jersey. The number of craft breweries in New Jersey grew 491% from 2012 to 2020 (from 22 to 130 craft breweries). An impetus for this growth was that New Jersey enacted legislation
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In Cervisia Veritas: The impact of repealing Sunday blue laws on alcohol sales and retail competition J. Wine Econ. (IF 1.4) Pub Date : 2024-01-09 Cristina Connolly, Marcello Graziano, Alyssa McDonnell, Sandro Steinbach
This study examines the impact of repealing Sunday blue laws on alcohol sales and retail competition, focusing on Connecticut’s 2012 policy change allowing Sunday beer sales in grocery stores. Using nationwide data from 2004 to 2021, we find a short-term increase in beer sales post-policy change, but no significant long-term economic effects on grocery and liquor stores. Our analysis also shows similar
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Slave labor productivity and wine output: Stellenbosch, 1680–1828 J. Wine Econ. (IF 1.4) Pub Date : 2024-01-08 Johan Fourie, Jan Greyling
This paper examines wine output and slave labor productivity in the Dutch and British Cape Colony, leveraging annual tax censuses. We document a substantial increase in wine production, but, despite substantial institutional changes over more than a century, we find surprisingly stable median wine yields. Exploiting the farm-level nature of our data, we observe increasing heterogeneity in wine yields
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California beer price posting: An exploratory analysis of pricing along the supply chain J. Wine Econ. (IF 1.4) Pub Date : 2024-01-08 Matthew T. Cole, Michael McCullough
Using newly released public data on beer prices in the state of California, we construct a large dataset (approximately 2 million observations) that includes beer prices and packaging configurations. We merge this dataset with brewery attributes and county demographics to explore pricing differentials across California, the U.S.’s largest brewing state. We provide evidence of potential pricing-to-market
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Sour grapes and sweet harmony: Historicizing collective action problems in the South African wine industry J. Wine Econ. (IF 1.4) Pub Date : 2024-01-08 Paul Nugent
The article addresses how merchants and wine producers interacted while oscillating between competition and collaboration in their internal relations. Spanning a period of more than a century, it addresses three chronological periods: 1900–1940, 1940–1994, and 1994 to the present. In the first, producers were able to forge a common front against the merchants in the shape of the Koöperatieve Wynbouwers
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Can a wine be feminine? Gendered wine descriptors and quality, price, and aging potential J. Wine Econ. (IF 1.4) Pub Date : 2023-12-21 Philippe Masset, Lohyd Terrier, Florine Livat
By analyzing more than 1,400 expert tasting notes, we assess the so-called gender profile of Bordeaux wines. We identify 329 gender-related wine descriptors, with a good balance between masculine and feminine descriptors. Some wines and vintages are described as more feminine than others, but no clear trend over time emerges. Our regression analysis further reveals that more feminine wines receive
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The transfer of vineyard ownership during the French Revolution: A pivotal event in the history of French wine J. Wine Econ. (IF 1.4) Pub Date : 2023-12-21 Rod Phillips
In 1790, the Revolutionary government expropriated most property owned by the Church and its entities, and sold it by auction. This effectively ended the centuries-old participation of the Church in wine production in France. Focusing on Burgundy, this article sketches the contours of the sale of vineyards and other wine-related property owned by the Church. It shows that auctions fetched prices well
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Have consumers escaped from COVID-19 restrictions by seeking variety? A Machine Learning approach analyzing wine purchase behavior in the United States J. Wine Econ. (IF 1.4) Pub Date : 2023-11-30 Wolfram Rinke, Shuay-Tsyr Ho
The COVID-19 pandemic itself constitutes an environment for people to experience the potential loss of control and freedom due to social distancing measures and other government orders. Variety-seeking has been treated as a mechanism to regain a sense of self-control. Using Machine Learning model and household-level data with a focus on the wine market in the United States, this study showcases the
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Apples to advocacy: Evaluating consumer preferences for hard cider policies J. Wine Econ. (IF 1.4) Pub Date : 2023-11-28 Aaron J. Staples, Philip H. Howard, David S. Conner, J. Robert Sirrine, Marcia R. Ostrom, Michelle Miller
Hard cider is a sector of a maturing craft beverage industry that continues to experience growth in the United States. Cider is also experiencing challenges, however, such as competition from other alcohol markets, changing consumer preferences, the supply chain, and inflationary pressures. National policy changes may help promote more optimal outcomes for this sector, but public support is important
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Potential use of weather derivatives in hedging aggregate viticulture yields: An analysis of the Niagara region of Canada J. Wine Econ. (IF 1.4) Pub Date : 2023-11-15 Don Cyr, Joseph Kushner, Mingtian Zhang
Although potentially useful for financially hedging systemic weather-related risks, weather contracts/derivatives (also referred to as parametric insurance) have not seen wide adoption in agriculture outside of applications in developing countries, frequently supported by governments and non-governmental organizations (NGOs). A significant impediment is the lack of financial firms willing to stand
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The impact of outside option saliency and product descriptions on consumer wine tasting behavior J. Wine Econ. (IF 1.4) Pub Date : 2023-09-27 Nadia A. Streletskaya, Nadeeka Weerasekara, Jie Li
Consumer choice of differentiated products, such as wine, depends on the composition of the choice set consumers are choosing from. However, choice sets are often situationally defined through wine-tasting lists or displayed wines in a particular tasting and sales environment. In this paper, we use an experiment to explicitly modify the saliency of wine options available outside the tasting room choice
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What's happened to the wine market in China? J. Wine Econ. (IF 1.4) Pub Date : 2023-09-15 Kym Anderson
China has been one of the most important sources of growth in global wine demand this century, accounting for 7% of the world's wine consumption and imports by 2017, or four times its 2005 shares. But China's per capita wine consumption peaked in 2012, has fallen every year since 2017, and in 2022 was one-third of its peak, and its imports have more than halved since 2017. Certainly, the COVID-19 disruption
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Spatial integration and hierarchy in Old-World wine markets: The role of the 2013 CAP reform J. Wine Econ. (IF 1.4) Pub Date : 2023-08-31 Andreas Rokopanos, Fragiskos Bersimis, Guenter Schamel, Christos Lallos
We explore the impact of the 2013 Common Agricultural Policy (CAP) reform on spatial price co-movements between the main European Union (EU) wine producer markets (i.e., Spain, France, and Italy). We consider monthly prices from January 2005 to January 2020 and R-Vine copula models, splitting the time period considered in December 2012 to track the changes in (1) the degree of integration, (2) the
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Ratings meet prices: The dynamic relationship of quality signals J. Wine Econ. (IF 1.4) Pub Date : 2023-08-08 Daniel Kaimann, Clarissa Laura Maria Spiess Bru, Bernd Frick
The impact of product ratings is significant in the experience goods market, whose intangible products are difficult to evaluate before consumption. Product ratings can reduce information asymmetries because they represent a credible signal of quality and thus positively affect product sales. In this study, we shed light on how professional critics behave by focusing on the influence of product characteristics
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The impact of wine tasters’ expectations on wine quality ratings and willingness-to-pay J. Wine Econ. (IF 1.4) Pub Date : 2023-08-07 Philippe Masset, Steffen Raub
Is it possible to exploit cognitive biases so that a non-professional taster prefers one wine to several other absolutely identical wines? To address this question, three complementary experiments were carried out. Each time, five wines were tasted blind in a tasting laboratory by 24 to 34 tasters. Converging evidence from the experiments shows that participants were not capable of identifying that
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To share or not to share: An analysis of wine list disclosure by Swiss restaurant owners J. Wine Econ. (IF 1.4) Pub Date : 2023-08-03 Olivier Gergaud, Philippe Masset, Alice Pedrinelli, Jean-Philippe Weisskopf
This paper uses data from the 2021 Swiss edition of the Gault&Millau food guide to analyze the probability with which restaurant owners decide to share their wine list with the public. This is an important question relating to the amount of information circulating in markets characterized by information asymmetry in the context of experience and credence goods. We find that restaurant owners are more
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The emergence of lower-alcohol beverages: The case of beer J. Wine Econ. (IF 1.4) Pub Date : 2023-06-16 Kym Anderson
Another quiet revolution is taking place in the alcoholic beverage markets: a trend toward lower-alcohol and even no-alcohol beverages, especially in the world's higher-income countries. This new trend adds to the long-term consumer trend in affluent countries of substituting quality for quantity in many of their purchases (premiumization), which, in the case of alcoholic beverages, has been driven
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Wine rankings and the Borda method J. Wine Econ. (IF 1.4) Pub Date : 2023-05-11 Salvador Barberà, Walter Bossert, Juan D. Moreno-Ternero
We propose to establish wine rankings using scores that depend on the differences between favorable and unfavorable opinions about each wine, according to the Borda rule. Unlike alternative approaches and specifications, this method is well-defined even if the panelists’ quality relations are not required to exhibit demanding properties such as transitivity or acyclicity. As an illustration, we apply
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Efficient pricing of Bordeaux en primeur wines J. Wine Econ. (IF 1.4) Pub Date : 2023-03-24 Philippe Masset, Jean-Philippe Weiskopf, Jean-Marie Cardebat
This paper proposes an approach to determine efficient release prices on the Bordeaux en primeur (primary) market. The model exploits information from the secondary market to estimate efficient release prices. We apply the model to a representative sample of wines from the 2021 vintage. The results show that most chateaux released their wines at prices that were too high. The median overpricing is
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Making wine, selling grapes, or delivering to a cooperative? Determinants of grape allocation J. Wine Econ. (IF 1.4) Pub Date : 2023-03-24 Alessandro Corsi, Simonetta Mazzarino, Vito Frontuto
A typical characteristic of the wine supply chain in the Old World is the significant share of cooperatives in wine-making that coexists with investor-owned firms and on-farm wine-makers. This paper analyzes the determinants of whether grape growers deliver their grapes to a cooperative winery of which they are members, sell their grapes to outside wineries, or make their own wine on their farm. Our
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The impact of direct to consumer shipping laws on the number and size distribution of U.S. wineries J. Wine Econ. (IF 1.4) Pub Date : 2023-03-03 Matthew T. Pesavento
The changing legislative landscape of the U.S. wine market provides a scenario to examine the effect of regulation on the size distribution of firms. Using the variation across states and time in the sum of in-state and out-of-state adult populations between 2002–2017, and a difference in difference-style empirical model, I examine how restrictions on Direct to Consumer (DTC) sales impact the number
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Stochastic error and biases remain in blind wine ratings J. Wine Econ. (IF 1.4) Pub Date : 2023-03-01 Jeffrey Bodington
Analyses and aggregations of the ratings that wine critics and judges assign to wines are made difficult by stochastic error and biases that remain even when wines are assessed blind to price, label, capsule, and closure. Stochastic error is due to the partially random nature of ratings. Cognitive and omitted-variable biases are due to anchoring, expectation, serial position, commercial, and other
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A maximum entropy estimate of uncertainty about a wine rating: What can be deduced about the shape of a latent distribution from one observation? J. Wine Econ. (IF 1.4) Pub Date : 2023-02-02 Jeffrey C. Bodington
Much research shows that the ratings that judges assign to the same wine are uncertain. And while the ratings may be independent, research also shows that they are not identically distributed. Thus, an acute difficulty in ratings-related research and in calculating consensus among judges is that each rating is one observation drawn from a latent distribution that is wine- and judge-specific. What can
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The economics of saignée in winemaking J. Wine Econ. (IF 1.4) Pub Date : 2023-01-17 Christopher Costello, Olivier Deschênes, Charles Kolstad, Andrew J. Plantinga, Tyler Thomas
The winemaking technique of saignée is common for some varietals, and the ensuing flavor profiles have been carefully analyzed by oenologists. However, we argue that saignée is fundamentally about economic tradeoffs between the quantity of primary wine that is ultimately produced, the quality (and thus, price) of that wine, and the amount of rosé wine that is bled off in the process. We develop the
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Explaining bilateral patterns of global wine trade, 1962–2019 J. Wine Econ. (IF 1.4) Pub Date : 2022-12-05 German Puga, Alfinura Sharafeyeva, Kym Anderson
This study uses gravity models to explain bilateral patterns of global wine trade since 1962. This is, to our knowledge, the first study on global wine trade covering the second wave of globalization as a whole. The results suggest that the impact of distance, common language, and common colonizer post-1945 on wine trade was lower in the 1991–2019 period than in the 1962–1990 period. We also use gravity
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Left, right, or both? Long-run returns from Bordeaux J. Wine Econ. (IF 1.4) Pub Date : 2022-12-01 Tor N. Tolhurst
As the market for fine-wine investing matures, basic questions of portfolio strategy remain unexplored. I evaluate how adding fine wine from the superstar châteaux of Bordeaux's Right Bank might complement the traditional focus on the five first-growths of Bordeaux's Left Bank. Fundamentals for the Right Bank's superstars are attractive: they produce roughly an order of magnitude less, face different
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Judging reliability at wine and water competitions J. Wine Econ. (IF 1.4) Pub Date : 2022-11-25 Elena C. Berg, Michael Mascha, Kevin W. Capehart
Studies suggest the inter-rater reliability of judges at wine competitions is higher than what would be expected by random chance, but lower than what is observed when experts in other fields make judgments specific to their expertise. To further contextualize the (un-) reliability of wine judging while also extending the study of fine water, we examine the inter-rater reliability of judges at an annual
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The effects of knowledge spillovers and vineyard proximity on winery clustering J. Wine Econ. (IF 1.4) Pub Date : 2022-11-18 Eric Stuen, Haifeng Liao, Jon Miller
We study the effect of proximity to other wineries on the formation of new wineries and how this effect depends on winemaking history in a location. Clustering is common in the wine industry, but it also depends on other factors, such as proximity to vineyards and high-reputation wineries. Using panel data with annual observations from 1994 to 2014 on 598 zip codes within Washington State, we estimate
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Estimation of alcohol demand elasticity: Consumption of wine, beer, and spirits at home and away from home J. Wine Econ. (IF 1.4) Pub Date : 2022-11-14 Tereza Čiderová, Milan Ščasný
Most of the previous research examined the demand for alcohol consumed at the off-trade (consumed at home). However, some consumers might prefer to consume alcohol on-trade (away from home) or switch between on-trade and off-trade consumption as a reaction to price or income change. We estimate the Quadratic Almost Ideal Demand System consisting of three broad alcohol categories, consumed on-trade
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Product differentiation and the relative importance of wine attributes: U.S. retail prices J. Wine Econ. (IF 1.4) Pub Date : 2022-09-29 Raj Chandra, GianCarlo Moschini
This paper investigates the relative importance of various attributes, including varietal, brands, and geographic origin, in explaining retail wine prices for the United States market. We use a metric based on the Shapely value, from cooperative game theory, in the context of an empirical hedonic price equation estimated using a large sample of retail wine sales for home consumption over the period
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Returns to public investments in clean plant centers: A case study of leafroll virus-tested grapevines in support of cost-effective grape production systems J. Wine Econ. (IF 1.4) Pub Date : 2022-09-20 Jie Li, Jason Troendle, Miguel I. Gómez, Jennifer Ifft, Deborah Golino, Marc Fuchs
Viruses and related graft-transmissible pathogens cause diseases that cost the grape industry billions of dollars annually if left uncontrolled. The National Clean Plant Network (NCPN), a USDA Farm Bill program, is an organization of clean plant centers that produce and maintain virus-tested foundation vine stocks and distribute propagation material derived thereof to nurseries and growers to minimize
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The impact of hail on retail wine sales: Evidence from Switzerland J. Wine Econ. (IF 1.4) Pub Date : 2022-09-05 Alexandre Mondoux
This paper uses a difference-in-differences approach to analyze the treatment effect of a hail weather shock in a specific Swiss wine-growing region. We exploit a natural experiment from Switzerland's Three Lakes wine region in 2013 and examine its impact on the country's retail market. We find statistically significant (1%-level) effects of –22.8% and +2.8% for the volume and price of wine consumed
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Proposed alcohol tax reform in the United Kingdom: Implications for wine-exporting countries J. Wine Econ. (IF 1.4) Pub Date : 2022-09-05 Kym Anderson, Glyn Wittwer
A proposal to reform the United Kingdom's excise duty on alcohol is under consideration during 2022. The proposal would change the tax base from volume of product to volume of alcohol, which would see a fall in the tax on sparkling wine (by about one-fifth), a rise in the tax on fortified wines of 18% alcohol by volume (ABV) (by about one-sixth), and table wines with more (less) than 11.5% ABV would
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How sample bias affects the assessment of wine investment returns J. Wine Econ. (IF 1.4) Pub Date : 2022-09-05 Joseph L. Breeden
Wine investment returns can come from overall market trends or price increases with age. Because of the short wine price histories available, market and maturation effects are difficult to separate. Consequently, researchers often obtain dramatically different estimates of investment returns. We find that data sample bias may be the hidden cause of the disparate estimates. In wine auction data, the
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Does quality pay off? “Superstar” wines and the uncertain price premium across quality grades J. Wine Econ. (IF 1.4) Pub Date : 2022-09-05 Stefano Castriota, Stefano Corsi, Paolo Frumento, Giordano Ruggeri
We use data from Wine Spectator on 266,301 bottles from 12 countries sold in the United States to investigate the link between the score awarded by the guide and the price charged. The link between quality and price is positive, in line with the literature. In a deeper inspection, however, hedonic regressions show that the price premium attached to higher quality is significant only for “superstar”
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Tracking the wines of the Judgment of Paris over time: The case of Stag's Leap Wine Cellars’ Cabernet Sauvignon J. Wine Econ. (IF 1.4) Pub Date : 2022-09-05 Olivier Gergaud, Victor Ginsburgh, Juan D. Moreno-Ternero
The outcome of the famous 1976 Judgment of Paris, a blind wine tasting of ten wines by nine French judges, brought American wines to the forefront of the wine business. A Californian wine, the 1973 Stag's Leap Wine Cellars S.L.V. Cabernet Sauvignon, was declared the winner, surpassing four highly prized French wines (Château Mouton-Rothschild 1970, Château Montrose 1970, Château Haut-Brion 1970, and
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Using Neural Network Models for Wine Review Classification J. Wine Econ. (IF 1.4) Pub Date : 2022-04-07 Duwani Katumullage, Chenyu Yang, Jackson Barth, Jing Cao
Wines are usually evaluated by wine experts and enthusiasts who give numeric ratings as well as text reviews. While most wine classification studies have been based on conventional statistical models using numeric variables, there has been very limited work on implementing neural network models using wine reviews. In this paper, we apply neural network models (CNN, BiLSTM, and BERT) to extract useful
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Wine Review Descriptors as Quality Predictors: Evidence from Language Processing Techniques J. Wine Econ. (IF 1.4) Pub Date : 2022-04-07 Chenyu Yang, Jackson Barth, Duwani Katumullage, Jing Cao
There is an ongoing debate on whether wine reviews provide meaningful information on wine properties and quality. However, few studies have been conducted aiming directly at comparing the utility of wine reviews and numeric measurements in wine data analysis. Based on data from close to 300,000 wines reviewed by Wine Spectator, we use logistic regression models to investigate whether wine reviews are
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The Water of Life and Death: A Brief Economic History of Spirits J. Wine Econ. (IF 1.4) Pub Date : 2022-02-18 Lara Cockx, Giulia Meloni, Johan Swinnen
Spirits represent around 50% of global alcohol consumption. This sector is much less studied than other alcoholic beverages such as wine or beer. This paper reviews the economic history of spirits and analyzes recent trends in the spirits markets. The technology to produce spirits is more complex than for wine or beer. Distillation was known in ancient Chinese, Indian, Greek, and Egyptian societies
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Expensive and Cheap Wine Words Revisited J. Wine Econ. (IF 1.4) Pub Date : 2022-02-18 Kevin W. Capehart
Previous work has quantitatively analyzed expert wine descriptions to identify some so-called “expensive” and “cheap” words that are indicative of a wine's price. This paper revisits that work. In particular, I examine whether words previously identified as expensive and cheap ones are still indicative of a wine's price when using the same methods and a different, larger dataset. My findings mostly
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How Many Latours Is Too Many? Measuring Brand Name Congestion in Bordeaux Wine J. Wine Econ. (IF 1.4) Pub Date : 2022-02-18 Christopher Buccafusco, Jonathan S. Masur, Ryan Whalen
Firms rely on brand names to market goods to consumers, and consumers rely on brand names to locate goods that satisfy their preferences. If multiple firms are using the same or similar names, consumers may be confused about which product to buy, and firms may not obtain the benefits of their investments in quality. Recently, both firms and scholars in a number of industries have expressed concern
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MADELINE PUCKETTE and JUSTIN HAMMACK: Wine Folly: The Master Guide. Avery - A Penguin Imprint, New York, NY, 2018, 320 pp., ISBN 978-0525533894 (hardcover), $35.00. J. Wine Econ. (IF 1.4) Pub Date : 2022-02-01 Joseph P. Newhouse
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Vertical and Horizontal Networks and Export Performance in the Spanish Wine Industry J. Wine Econ. (IF 1.4) Pub Date : 2022-01-11 Juan-Ramón Ferrer, Silvia Abella-Garcés, Raúl Serrano
Wineries in the “old world” export almost 40% of their production. This study analyzes the influence of vertical and horizontal networks on export performance. We draw on a sample of 183 Spanish wineries and examine the main independent variables using a two-step Heckman model. We find positive effects of horizontal networks and—at a somewhat lower level—downstream vertical networks on export performance
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Business Cycles and Alcohol Consumption: Evidence from a Nonlinear Panel ARDL Approach J. Wine Econ. (IF 1.4) Pub Date : 2021-12-23 Elkhan Richard Sadik-Zada, Britta Niklas
This study revisits the relationship between economic variables and alcohol consumption from a macro perspective. Focusing explicitly on the asymmetries of the responsiveness of alcohol consumption during the expansion and contraction phases of the business cycle, asymmetric panel estimators are employed. We employ a nonlinear autoregressive distributed lag model for a panel of 24 countries for the
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Restaurant Wines: Bottle Margins and the By-the-Glass Option J. Wine Econ. (IF 1.4) Pub Date : 2021-12-14 James A. Dearden, Xiaohui Guo, Chad D. Meyerhoefer
Using a sample of New York City restaurants, we examine the relationship between a wine's bottle margin and whether the restaurant offers that same wine by the glass. We find that restaurants offer less expensive wines by the glass but set higher margins on these bottles than for similar wines offered only in bottles. Overall, offering wine by the glass is associated with a 5.0% increase in the bottle
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Estimating Supply Functions for Wine Attributes: A Two-Stage Hedonic Approach J. Wine Econ. (IF 1.4) Pub Date : 2021-12-07 Edward Oczkowski
A vast body of literature exists on estimating hedonic price functions, which relate the price of wine to its attributes. Some existing literature has employed producer-specific variables such as quantity sold and producer reputation in hedonic functions to potentially capture supply influences on prices. This practice is inconsistent with the original Rosen (1974) hedonic theoretic foundation. To
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Willingness to Pay for Wine Bullshit: Some New Estimates J. Wine Econ. (IF 1.4) Pub Date : 2021-11-11 Kevin W. Capehart
As part of a classic article in this journal, Richard Quandt identified 123 wine descriptors that he deemed to be bullshit. In this paper, I examine whether wine consumers are willing to pay any more (or less) for wine if it is described by one of those “bullshit” descriptors. I use three methods to examine that. The first method involves applying a hedonic regression to a dataset of prices and expert
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A “Sideways” Supply Response in California Winegrapes J. Wine Econ. (IF 1.4) Pub Date : 2021-11-09 Sarah Consoli, Elizabeth A. Fraysse, Natalya Slipchenko, Yi Wang, Jahon Amirebrahimi, Zhiran Qin, Neil Yazma, Travis J. Lybbert
This paper explores growers’ supply response to the 2005 “Sideways effect” demand shock (Cuellar, Karnowsky, and Acosta, 2009) triggered by the 2004 release of the movie Sideways. We use a modified difference-in-difference approach to evaluate the supply response in California and regional supply response differences within California. We use U.S. Department of Agriculture data for the period 1999–2012
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Market Segmentation and Dynamic Analysis of Sparkling Wine Purchases in Italy J. Wine Econ. (IF 1.4) Pub Date : 2021-10-08 Francesca Bassi, Fulvia Pennoni, Luca Rossetto
The Italian market of sparkling wines increases as volume and assortment (such as brands, appellations, typologies) mainly because of sparkling Prosecco consumption. We investigate the repeated purchase behavior of sparkling wines in two years within the supermarket channel through scanner data collected from a consumer panel. We propose a Hidden Markov Model to analyze these data, assuming an unobservable
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COVID-19 and Global Beverage Markets: Implications for Wine J. Wine Econ. (IF 1.4) Pub Date : 2021-10-04 Glyn Wittwer, Kym Anderson
This article provides an empirical case study of the impacts of the COVID-19 pandemic on global beverage markets, particularly the wine sector. Both international trade and domestic sales have been adversely affected by temporary shifts away from on-premise sales by social distancing measures and self-isolation that led to the closure of restaurants, bars, and clubs, plus declines in international
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Did Wine Consumption Change During the COVID-19 Lockdown in France, Italy, Spain, and Portugal? J. Wine Econ. (IF 1.4) Pub Date : 2021-10-04 Magalie Dubois, Lara Agnoli, Jean-Marie Cardebat, Raúl Compés, Benoit Faye, Bernd Frick, Davide Gaeta, Eric Giraud-Héraud, Eric Le Fur, Florine Livat, Giulio Malorgio, Philippe Masset, Giulia Meloni, Vicente Pinilla, João Rebelo, Luca Rossetto, Günter Schamel, Katrin Simon-Elorz
This article documents how the COVID-19 crisis has affected the drinking behavior of Latin European wine consumers. Using a large online survey conducted during the first lockdown in France, Italy, Portugal, and Spain (n = 7,324 individuals), we reconstruct the purchasing and consumption patterns of the respondents. The number of people who maintained their wine consumption frequency is significantly