Attributes’ specification of wine indexes: is devil in the details?

Authors

  • JEAN-MARIE CARDEBAT INSEEC School of Business & Economics, Larefi, University of Bordeaux, France
  • BENOIT FAYE INSEEC School of Business & Economics, Bordeaux, France; Associated researcher, Larefi, University of Bordeaux, France
  • ERIC LE FUR INSEEC School of Business & Economics, Bordeaux, France
  • PHILIPPE MASSET École hôtelière de Lausanne, HES-SO University of Applied Sciences and Arts, Western Switzerland

DOI:

https://doi.org/10.54695/bmi.161.4580

Keywords:

Auction prices;, Hedonic function, Multiplicative heteroscedastic, Wine

Abstract

The dispersion of prices on the fine wines market raises the issue of the wine price index construction and valuation of wine funds. In this paper, we first propose an extended hedonic function to better control good heterogeneity (which is a major source of price dispersion) by encoding auction experts’ comments about the state of preservation of the bottles. Second, we use a multiplicative heteroscedastic model to identify the attributes providing the most price dispersion. Outcomes allow for defining the relevant components of wine price hedonic function, and spurs data providers to develop the information on wine products. This result might be useful for professionals willing to improve their fine wine valuation process and then would improve the fine wines market efficiency.

Published

2020-06-01

How to Cite

CARDEBAT, J.-M., FAYE, B. ., FUR, E. L. ., & MASSET, P. . (2020). Attributes’ specification of wine indexes: is devil in the details?. Bankers, Markets & Investors, 161(1). https://doi.org/10.54695/bmi.161.4580

Issue

Vol. 161 (2020): BANKERS, MARKETS AND INVESTORS

Section

Articles

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